Madoff Bankruptcy Trustee Secures Largest Feeder-Fund Bank Settlement

NEW YORK - (Mealey's) The trustee of the bankruptcy estate of convicted multibillion-dollar Ponzi scheme mastermind Bernard L. Madoff secured a nearly $500 million settlement with a feeder fund of Madoff's investment firm, according to documents made available Dec. 7 in a New York federal bankruptcy...

$550M Settlement For Family Secured By Madoff Trustee

NEW YORK -- (Mealey's) The bankruptcy trustee for the investment company once run by convicted Ponzi scheme operator Bernard L. Madoff has secured $550 million in a settlement with the family of one of Madoff's earliest investors, according to a motion for entry of order filed Dec. 8 in a New...

N.Y. Trustee Seeks $1 Billion From 7 International Banks

NEW YORK - (AP) Seven global banking institutions enabled disgraced financier Bernard Madoff's Ponzi scheme by "creating and offering derivative investment products linked to various Madoff feeder funds," a court-appointed trustee alleged Wednesday. Trustee Irving Picard announced a lawsuit...

Madoff Trustee Gets 'Game Changing' $7 Billion Settlement

NEW YORK - (AP) The widow of a Florida philanthropist who had been the single-largest beneficiary of Bernard Madoff's colossal Ponzi scheme has agreed to return $7.2 billion in bogus profits to the victims of the fraud, she and authorities announced Friday. The trustee recovering money for Madoff's...

'Largest Single Forfeiture In U.S. History' Announced In Madoff Lawsuit

NEW YORK - (Mealey's) In what is being called the "largest single forfeiture in U.S. history," the U.S. attorney for the Southern District of New York and others announced Dec. 17 that they have reached a $7.2 billion settlement with the estate of deceased investor Jeffrey M. Picower to...

Madoff Lawsuit: Mets Owners Owe Victims $300 Million

NEW YORK - (AP) The owners of the Mets turned a blind eye to Bernard Madoff's massive fraud, reaping $300 million in false profits and using a large chunk to run the team, according to a lawsuit unsealed Friday. The lawsuit claims the owners were so dependent on the disgraced financier's. . ...

Tobey Maguire, Other Celebrities Sued Over Poker Winnings

LOS ANGELES - (AP) "Spider-Man" star Tobey Maguire and other celebrities have been caught in a web of lawsuits seeking to reclaim more than $4 million won during unlicensed poker matches at upscale Beverly Hills hotels, court records show. The lawsuits were filed by a bankruptcy trustee attempting...

Goodwin Procter Expands Securities Litigation Practice With Addition Of Daniel J. Tyukody In Los Angeles

BOSTON - Goodwin Procter LLP , a national Am Law 50 firm, has announced that Daniel J. Tyukody has joined the firm's Litigation Department in Los Angeles as a member of its Securities Litigation & White Collar Defense Practice. He will focus on all aspects of securities litigation and regulatory...

$1 Billion Settlement Reached With 2nd-Largest Madoff Feeder Fund

NEW YORK - (Mealey's) Liquidation trustee for Bernard L. Madoff Investment Securities LLC (BLMIS) Irving H. Picard and 30 investment funds and affiliates of money management company Tremont Group Holdings Inc. have agreed to settle claims associated with the defendants' participation in Madoff's...

In Amended Complaint, Madoff Trustee Seek $226 M From Madoff Management

The court-appointed trustee overseeing the unraveling of Bernard Madoff's massive Ponzi scheme has filed an amended complaint in which he is seeking the return of $226.4 million from several Madoff family members including Madoff's brother, sons, and niece (the "Madoff Defendants")...

The Week in Securities Litigation: Jury Begins Deliberations In Stanford Ponzi Scheme Case, SEC Announces 2 Partial Settlements

This week the jury began deliberations in the Robert Allen Stanford Ponzi scheme case without hearing from Mr. Stanford despite promises to the contrary from defense counsel at the beginning of the trial. Granger announced an SEC FCPA probe centered on the use of gift cards in China. The Chairman...

Madoff Trustee Agrees To $162 Million Settlement With New York Mets' Owners

NEW YORK - (Mealey's) The owners of Major League Baseball's New York Mets and the liquidation trustee of Bernard L. Madoff Investment Securities LLC (BLMIS) agreed on March 19 to a $162 million settlement of claims relating to the defendants' alleged profiting from Madoff's massive Ponzi...

Greenberg Traurig Agrees To Pay $61 Million To Settle Ponzi Claims

By Michael J. Lello HOENIX - (Mealey's) The law firm Greenberg Traurig LLP on June 20 agreed to pay $61 million to settle a suit in the U.S. District Court for the District of Arizona alleging that it aided an alleged Ponzi scheme that bankrupted two companies and led to $900 million in losses...

$410 Million Settlement Reached With Controller Of 4 Madoff Feeder Funds

NEW YORK - (Mealey's) In what he called "one of the largest agreements of its kind," New York Attorney General Eric. T. Schneiderman on June 25 announced that he had reached a $410 million settlement with J. Ezra Merkin for his role in the Bernard L. Madoff Investment Securities LLC (BLMIS...

The Week In Securities Litigation: SEC Heading For Record Year Of Settled Enforcement Actions

The SEC is heading for a record year in terms of the number of settled enforcement actions according to a new report by NERA. The Commission also lost its bid to compel SIPIC to provide coverage for those who purchased CDs from the off-shore bank operated by convicted fraudster Robert Allen Stanford...

Prominent Athletes Sue Financial Advisor, SunTrust Bank Alleging Ponzi Scheme Investments

Several prominent athletes, including a newly-minted gold medalist member of the U.S. Olympic Soccer Team, have sued their former financial advisor and his employer, SunTrust Bank ("SunTrust"), alleging that they were unwitting investors in several Ponzi schemes that ultimately resulted in...

Law Firm To Pay $25 Million To Settle Nadel Ponzi Charges

TAMPA, Fla. - (Mealey's) A federal judge in Florida on Aug. 29 approved Holland & Knight LLP's agreement to pay $25 million to settle charges brought by the Securities and Exchange Commission that it helped hedge fund manager Arthur Nadel conduct a $168 million Ponzi scheme ( Securities and...

Gibraltar Pays $65 Million To Settle Rothstein Ponzi Claims

FORT LAUDERDALE, Fla. - (Mealey's) The trustee for a bankrupt feeder fund and the trustee of convicted Ponzi schemer Scott W. Rothstein's law firm have agreed to an amended $65 million settlement with Gibraltar Private Bank and Trust Co., a bank Rothstein is alleged to have used in his scam,...

Parties Seek Approval Of $80 Million Settlement In Madoff Feeder Fund Suit

NEW YORK - (Mealey's) Investors on Nov. 6 asked a federal judge in New York to preliminarily approve a potential $80.25 million settlement of claims that defendants concealed that the investors' funds were being placed in accounts that were part of Bernard L. Madoff's massive Ponzi scheme...

Feeder Funds To Pay Nearly $220 Million To Settle Madoff Ponzi Scheme Fraud Claims

NEW YORK - (Mealey's) Four Bernard L. Madoff Investment Securities LLC feeder funds and several of their current and former owners and officers have agreed to pay nearly $220 million to settle claims that they breached their fiduciary duties under the Employee Retirement Income Security Act by "recommending...

The Week In Securities Litigation: SEC Brings Action Against 8 Fund Directors, 2 Actions Focused On Chinese Issues

The SEC brought an action against eight fund directors, six of whom were independent and members of the audit committee, alleging that they caused material misstatements in the valuation of fund assets by failing to implement proper standards. The agency also brought two actions focused on Chinese issues...

The Week In Securities Litigation: A New Direction For Securities Enforcement Actions?

Changes at the top of the SEC and the DOJ's criminal division may signal a new direction for securities enforcement actions. Former U.S. Attorney Mary Jo White was nominated by the President to be SEC Chairman. At the same time Lanny Breuer, Assistant Attorney General in charge of DOJ's Criminal...

Madoff's Brother Agrees To $90 Million Settlement In Trustee Lawsuit

NEW YORK - (Mealey's) The brother of convicted Ponzi scheme mastermind Bernard L. Madoff has agreed to pay more than $90 million to settle claims that he participated in his brother's massive Ponzi scheme but could escape any payment under a consent order filed Feb. 6 in a New York federal bankruptcy...

The Week In Securities Litigation: SEC, CFTC Chairmen Testify; 2 Sentenced To Long Prison Terms

SEC Chairman Elise Walter and CFTC Chairman Gary Gensler testified before a Senate Committee this week, focusing on the implementation of Dodd-Frank. The SEC also approved the budget for the PCAOB. Two former senior executive in the organization of jailed Ponzi schemer Allen Stanford were sentenced...

2nd Circuit: Madoff Trustee Cannot Sue Banks On Behalf Of Customers

NEW YORK - (Mealey's) The Second Circuit U.S. Court of Appeals on June 20 affirmed a district court's ruling that Bernard L. Madoff Investment Securities LLC (BMLIS) trustee Irving H. Picard cannot sue JPMorgan Chase & Co., HSBC Holdings PLC, UBS AG and UniCredit SpA for the banks' alleged...