Friday, 1 July 2016
Last updated 29 min ago
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.