Judge: Trustee May Use Bankruptcy Code To Avoid Paying Certain Claims

Judge: Trustee May Use Bankruptcy Code To Avoid Paying Certain Claims

NEW YORK - A federal judge in New York on Feb. 12 ruled that the liquidation trustee for Bernard L. Madoff Investment Securities LLC (BLMIS) may use a portion of the Bankruptcy Code to avoid making customer payments to a number of defendants that are subject to clawback suits for the recovery of funds they received as part of Bernard L. Madoff's massive Ponzi scheme (Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, No. 12 MC 115 $(JSR$), $(In re: Madoff Securities$), S.D. N.Y.).

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