Madoff Sentenced to 150 Years in Prison for $50 Billion Ponzi Scheme
A New York federal judge today sentenced Bernard L. Madoff to 150 years in prison for running a $50 billion Ponzi scheme through his investment advisory business, Bernard L. Madoff Investment Securities LLC (United States of America v. Bernard L. Madoff, No. 09-cr-213, S.D. N.Y.; See June 2009, Page 5).
U.S. Judge Denny Chin of the Southern District of New York handed down the sentence in the criminal proceedings against Madoff, media sources reported.
Bermudian Insurance Company Settles Madoff-Related Class Action
An international insurance company has agreed to settle a class action lawsuit filed by investors who claimed that the company and others failed to provide proper due diligence before investing in the Bernard L. Madoff Ponzi scheme (Chateau Fiduciaire S.A., as Trustee of The MAP Trust, v. Argus International Life Bermuda Limited, et al., No. 09-0557, S.D. N.Y.).
Madoff Bankruptcy Trustee Reaches Settlement with Hedge Fund
A federal bankruptcy judge on June 16 approved a settlement between two trading companies managed by a hedge fund and wholly owned subsidiary of Banco Santander, S.A. of Spain and the court-appointed trustee of Bernard L. Madoff Investment Securities LLC, requiring the funds to repay more than $235 million for funds they withdrew before the filing of the bankruptcy proceedings against Madoff and his investment company (In re Bernard L. Madoff, et al. [Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC], No. 08-1789, S.D. N.Y. Bkcy.).
SEC Order Prohibits Madoff from Dealing with Securities Professionals
Bernard L. Madoff has been barred from associating with any securities brokers, dealers or investment advisers and must seek Securities and Exchange Commission approval before any reapplication with the SEC to deal with the securities industry, the SEC ruled in a June 16 administrative order (In the Matter of Bernard L. Madoff, File No. 3-13520, SEC).
According to the administrative order, Madoff submitted an order of settlement with the SEC, "which the Commission has determined to accept," pursuant to Section 15(b) of the Securities Exchange Act of 1924 and Section 203(f) of the Investment Advisers Act of 1940.
Trustee's Net Equity Definition Not Proper Under SIPA, Madoff Customers Argue
Customers of Bernard L. Madoff Investment Securities LLC (Madoff Securities) filed a class action complaint on June 5 in federal bankruptcy court in New York , seeking a determination of whether the trustee of the Madoff Securities liquidation's definition of net equity meets the plain language of the Securities Investor Protection Act (SIPA) (In re Bernard L. Madoff Investment Securities LLC, [May Albanese, et al. v. Irving H. Picard, as Trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC], No. 08-01789 (BRL), S.D. N.Y. Bkcy.).
Madoff Investors Allege Bankruptcy Trustee Is Protecting Brokerage Industry
Three alleged victims of the Bernard L. Madoff Ponzi scheme filed a lawsuit in a New York federal bankruptcy court on June 10, claiming that the trustee of Madoff's asset liquidation has breached his fiduciary duty by refusing to pay the investors Securities Investor Protection Corp. (SIPC) insurance to the benefit of broker-dealers (In re Bernard L. Madoff Investment Securities LLC [Diane and Roger Peskin, et al. v. Irving H. Picard, as trustee for the liquidation of Bernard L. Madoff Investment Securities LLC], No. 08-01789 [BRL], S.D. N.Y. Bkcy.).
Multiemployer Funds Oppose Consolidation Of ERISA, Securities Claims
The trustees of two multiemployer benefit plans that brought a class action under the Employee Retirement Income Security Act against "feeder funds" that invested plans asset in Bernard L. Madoff-related investment funds on June 5 moved for relief from the consolidation of their ERISA claims with the securities claims in other actions against the same funds (William C. Towsley, et al. v. Beacon Associates Management Corp., et al., No. 09-cv-4453, S.D. N.Y.).
N.Y. Attorney General Charges Madoff Feeder Fund Manager with Securities Fraud
New York Attorney General Andrew Cuomo filed a complaint against the manager of feeder funds that were part of the Bernard L. Madoff Ponzi scheme on April 6 in a New York state court, charging the manager with violations of New York law in connection with alleged misrepresentations he made concerning investment with the funds (The People of the State of New York By Andrew Cuomo v. J. Ezra Merkin, et al., N.Y. Sup., New York Co.).
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