The unique circumstances of Ponzi schemes require careful consideration to mete out justice in unwinding them and in redressing the injuries to defrauded victims. Investors who got out early were often paid back in full, plus some. Other investors who...
Last Friday, Florida Governor Rick Scott signed HB 95.
This bill amends § 726.109 of the Florida Statutes by adding this broad defense
to a claim to avoid a charitable contribution as a fraudulent transfer:
"The transfer of a charitable...
stockbroker defense in § 546(e) of the Bankruptcy Code creates a safe harbor
for recipients of certain types of transfers and can bar fraudulent transfer
claims brought by a trustee. In Picard v.
Katz , this was a $1 billion issue, and one...
by Ben Feder
Judge Jed S. Rakoff of the Southern District of New York last week ruled that the U.S. Bankruptcy Code does not permit a bankruptcy trustee to recover foreign transfers [ an enhanced version of this opinion is available to lexis.com subscribers...
Rejecting a Seventh Circuit precedent, the Fifth Circuit has ruled that a non-dischargeability claim under section 523(a)(2)(A) must be based upon a false representation. While bad conduct that does not involve a misrepresentation may be actionable under...
The Fifth Circuit has ruled that, under the facts of the
specific case, that bidders could recover their costs without a showing of
direct benefit to the estate. Matter of ASARCO LLC , No. 10-40930 (5th
Cir. 8/16/11). The specific holding was that...
Judge Jed S. Rakoff this week denied the request of Irving Picard, the trustee of Bernard L.
Madoff Investment Securities LLC ("BLMIS") , to pursue an immediate appeal
Rakoff's recent decision to dismiss most of the counts set forth...
Philip Bentley of Kramer Levin Naftalis & Frankel LLP, New York, spoke on February 25, 2009 at the Madoff Litigation Conference, conducted by HB Litigation Conferences in New York City. Mr. Bentley discussed the potential impact of the recent ruling...
Consider three recent events in the Bernard Madoff Ponzi scheme case, which demonstrate a certain unevenness and perhaps even inconsistency in the authority vested in the trustees who are administering these types of cases. Trustees act under the authority...
The Wall Street
Journal's Bankruptcy Beat blog yesterday featured a conversation with
bankruptcy attorney Kathy Bazoian Phelps of Danning, Gill, Diamond &
Kollitz, LLP, co-author of the The Ponzi Book: A Legal Resource for Unraveling Ponzi...
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'...
WASHINGTON, D.C. — (Mealey's) The U.S. Supreme Court on Oct. 7 refused to hear a case in which the 10th Circuit U.S. Court of Appeals had affirmed that fraudulently transferred property is not part of a bankruptcy estate until it is recovered...
Can different but related account holders offset losses in one account against gains in another account? Can a husband and wife with separate accounts offset losses in one account against gains in the other? When there is a family trust, can the trustee...
On this edition, James D. Higgason Jr., partner in the trial section of the Houston office of Andrews Kurth LLP, discusses his chapter titled Fraudulent Transfer Action Claims Against the FDIC in Bank Holding Company Cases that appears in the Collier...
Determined not to hold a securities brokerage firm liable
for fraudulent transfers in a Ponzi scheme case, the Fourth Circuit recently
pushed the boundaries of fraudulent transfer law to affirm the lower court's
dismissal of the trustee's claims...