Jury To Hear Madoff Trustee’s Suit Against Mets Owners

Nov 28 2011 | 9:55am ET

Madoff bankruptcy trustee Irving Picard will get to make his case against the owners of the New York Mets before a jury.

U.S. District Judge Jed Rakoff ruled Wednesday in Manhattan that the trustee has the constitutional right to have a jury hear his $386 million lawsuit against the Mets owners, including Fred Wilpon and Saul Katz.

In so ruling, Rakoff rejected the Mets owners’ claim that Picard had no right to a jury trial because he, like Madoff's firm itself, could not bring fraudulent transfer claims, reports Reuters.

"This confuses the right to a jury trial with a right to bring a claim," Rakoff wrote. "(Madoff's firm) might well be barred from bringing fraudulent conveyance claims on the facts of this case; but if it could bring such claims, it would have a right to a jury trial on those claims."

Picard accuses the Mets owners of fraudulently taking money out of Bernard L. Madoff Investment Securities, the investment company run by convicted Ponzi schemer Bernie Madoff.

Rakoff set March 19, 2012 as the trial date.

The $386 million suit is all that remains of Picard’s original demand for $1 billion from the Mets owners, whom he claimed "willfully blinded themselves" to Madoff's fraud. Rakoff earlier threw out nine of Picard’s 11 claims on the grounds that the trustee could attempt to recover “fictitious” profits and principal in only the last two years of the Ponzi scheme, not the last six years as Picard had sought.

The Mets owners have denied Picard’s accusations.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.