Madoff Trustee Wants To Re-Sue Banks

Sep 2 2014 | 8:17am ET

The trustee in the Bernard Madoff case is taking two adverse court rulings as an opportunity to again sue several banks that allegedly benefitted from the $65 billion Ponzi scheme.

Earlier this year, the U.S. District Court in Manhattan put severe new limits on Irving Picard’s ability to recover money from some banks. In April, it ruled that Picard must show that banks intentionally ignored red flags about Madoff’s operation, and in July that he must show that foreign entities received money from Madoff in the U.S.

“Given the intervening change in law governing his claims, the trustee respectfully submits that ‘justice so requires’ granting him leave to replead his complaints,” Picard said in a filing last week with federal bankruptcy court in Manhattan. He also asked permission to take discovery from some defendants.

The requests will be considered on Oct. 22.

Among the banks that could be affected by Picard’s plans are Banco Bilbao Vizcaya, Crédit Agricole, Credit Suisse, Intesa Sanpaolo and Royal Bank of Canada.

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