Supreme Court Rejects Madoff, Stanford Receiver Appeals

Jul 1 2014 | 7:26am ET

The U.S. Supreme Court yesterday offered no relief to the men seeking to recover money for victims of two of the largest Ponzi schemes in history.

The high court declined to hear the appeals of Bernard Madoff receiver Irving Picard and R. Allen Stanford receiver Ralph Janvey. Both were seeking review of lower-court decisions that limit the parties they are permitted to seek recoveries from.

The justices’ decision seriously impairs Picard’s effort to sue Madoff’s banks, which he accused of aiding and abetting the arch-fraudster's $65 billion scam. The refusal to grant certiorari leaves in place the Manhattan federal appeals court decision that found Picard “stands in the shoes” of Madoff as receiver and thus lacks standing to sue “third parties for participating in a fraud that” Madoff orchestrated.

The decision spares HSBC Holdings, UniCredit and UBS from Picard’s litigation, although his spokesman said he will continue to pursue $3.5 billion in bankruptcy claims against them.

The court’s move also upholds a lower-court decision that Janvey lacked standing to sue Stanford employees on behalf of the receivership’s creditors.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note