Madoff Trustee's $30 Billion Bank Lawsuits Blocked

Jun 21 2013 | 11:28am ET

The trustee in the Bernard Madoff case cannot seek some $30 billion from the fraudster's banks, a federal appeals court ruled yesterday.

The U.S. Second Circuit Court of Appeals in Manhattan refused to overturn two lower-court decisions barring Irving Picard from suing JPMorgan Chase, HSBC Holdings and others. The decision is a major hit to Picard's goal of collecting enough money to make Madoff's victims whole.

"Picard stands in the shoes" of the Ponzi schemer "and may not assert claims against third parties for participating in a fraud that BLMIS orchestrated," the three-judge panel ruled. The ruling also said that Picard's responses were "scattershot" and "missed the mark."

Picard is reviewing the decision and may appeal it, his spokeswoman said.

Picard has collected about $9.3 billion of the $17 billion lost in the Madoff fraud. His spokeswoman said he still has about $4 billion in outstanding lawsuits.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note