Bankruptcy

Recent Posts

Custodial Bank Wins Jury Verdict in Ponzi Scheme Case
Posted on 23 Jul 2013 by Kathy Bazoian Phelps

A group of investors in the Madoff case suffered a loss when the jury verdict was announced in favor of Westport National bank and its parent, Connecticut Community Bank. Read the following article for more information about the jury verdict and the related... Read More

Tiger Woods Foundation Faces $500,000 Clawback Suit From Stanford Receiver
Posted on 1 May 2014 by Jordan D. Maglich

The court-appointed receiver overseeing recovery of assets for Allen Stanford's massive $7 billion Ponzi scheme has filed a lawsuit seeking the return of more than $500,000 donated by Stanford to charitable organizations headed by golfer Tiger Woods... Read More

April 2013 Ponzi Scheme Roundup
Posted on 3 May 2013 by Kathy Bazoian Phelps

April was a remarkably busy month for Ponzi scheme news, especially in India. Here is a summary of stories that were reported this month. Be sure to read the international news, because Ponzi schemes are not just limited to the U.S. Please feel free... Read More

February 2016 Ponzi Scheme Roundup
Posted on 2 Mar 2016 by Kathy Bazoian Phelps

Below is a summary of the activity reported for February 2016. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 108 years of newly imposed sentences for people involved in Ponzi schemes; at least 10 new Ponzi schemes... Read More

Attorney Fees At Risk in the Aftermath of Ponzi Schemes
Posted on 19 Apr 2012 by Kathy Bazoian Phelps

Attorneys provide legal services, bill for them, and hope to get paid. Sometimes, they even get paid. When attorney fees meet up with Ponzi schemes, however, the game changes, and attorneys face a host of additional problems relating to their fees... Read More

Ponzi Victims Pitted Against Each Other: Madoff Trustee v. California Attorney General
Posted on 5 Apr 2012 by Kathy Bazoian Phelps

"An under-appreciated evil of substantial frauds . . . is how they pit their victims against one another." United States v. Dreier , 682 F. Supp. 2d 417, 418 (S.D.N.Y. 2010). In the typical Ponzi case, some victims may employ strategies... Read More

NY Times Column Criticizing Madoff Trustee Flawed on Many Levels
Posted on 8 Jun 2012 by Kathy Bazoian Phelps

A recent New York Times article by Andrew Ross Sorkin severely and unfairly criticizes Irving Picard, the trustee for the Bernard L. Madoff Ponzi scheme. It states, "Mr. Picard has had much more success collecting money for himself and a dozen... Read More

Who Are the Victims in the Bernard Madoff Ponzi Scheme?
Posted on 25 Nov 2013 by Kathy Bazoian Phelps

People lose money in Ponzi schemes. They may have invested directly, or perhaps through a feeder fund. Or maybe they invested in a limited partnership that itself invested in the Ponzi scheme. When the Ponzi scheme implodes, people want their money back... Read More

Eleventh Circuit Decides Important Ponzi Scheme Issues
Posted on 10 Jun 2014 by Kathy Bazoian Phelps

The Eleventh Circuit issued an opinion this week that has to make receivers happy. See Wiand v. Lee , 2014 U.S. App. LEXIS 10154 (11th Cir. Jun. 2, 2014) [ an enhanced version of this opinion is available to lexis.com subscribers ]. Fraudulent transfer... Read More

How to Calculate Penalties for Financial Institutions in Ponzi Scheme Cases
Posted on 6 Feb 2014 by Kathy Bazoian Phelps

The Ponzi Scheme Blog’s JANUARY POLL asked how fines should be calculated for financial institutions engaged in wrongful conduct in Ponzi schemes. While much has been written recently about banks being “too big to jail,” they are clearly... Read More

Hopelessly Confused SLUSA Issues for Ponzi Scheme Victims Following Troice?
Posted on 14 May 2014 by Kathy Bazoian Phelps

As reported in The Ponzi Scheme Blog , the Supreme Court recently issued an important decision further defining the boundaries of SLUSA – the Securities Litigation Uniform Standards Act of 1998. Chadbourne & Park LLP v. Troice , 2014 U.S. LEXIS... Read More

July 2013 Ponzi Scheme Roundup
Posted on 5 Aug 2013 by Kathy Bazoian Phelps

There has been no slowdown in Ponzi scheme news over the summer. Here is a summary of stories that were reported for the month of July. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please remember that... Read More

Six Years Later, Boy Band Founder's Ponzi Scheme Victims Set For 4% Payout
Posted on 18 Jun 2013 by Jordan D. Maglich

More than six years after his $300 million Ponzi scheme collapsed, victims of former boy band mogul Lou Pearlman's scheme are set to receive an initial payout of just four cents on the dollar. In a distribution plan (the "Plan") filed... Read More

April 2016 Ponzi Scheme Roundup
Posted on 3 May 2016 by Kathy Bazoian Phelps

Below is a summary of the activity reported for April 2016. The reported stories reflect: 3 guilty pleas or convictions in pending cases; over 26 years of newly imposed sentences for people involved in Ponzi schemes; at least 10 new Ponzi schemes worldwide;... Read More