Wednesday, 28 January 2015
Last updated 19 min ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…