Madoff Trustee vs. the Wilpons - Meet the Mess

Madoff Trustee vs. the Wilpons - Meet the Mess

Fred Wilpon, the owner of the New York Mets, was a close friend of Bernie Madoff, and it has been generally believed since the outset of the scandal that Wilpon, his family and affiliated enterprises lost hundreds of millions in the great Ponzi scheme. It has also been known that the Wilpon group was a so-called "net winner", as it had collectively withdrawn more over the years from Bernard L. Madoff Investment Securities LLC ("BLMIS") than it had invested, and it has been expected that Irving Picard, the BLMIS trustee, would seek to recover the difference - an amount believed to be in the tens of millions -- on behalf of the BLMIS bankruptcy estate as a "fraudulent conveyance". (Kelley Drye & Warren LLP represents other Madoff investors from whom recovery is being sought.) However, as has been widely reported over the past several days, the Wilpon group could be at risk for much more. While the details remain unclear because of the "sealing" of the trustee's lawsuit, it appears that Picard is seeking to recover hundreds of millions withdrawn from BLMIS by the Wilpon group, rather than simply the difference between such withdrawn amounts and the invested principal.     

Read this article in its entirety at Kelley Drye & Warren LLP's Bankruptcy Law Insights blog

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