LexisNexis® Legal Newsroom
Do Not Hide Assets from the Trustee. You Will Get Caught and Go to Jail.

Most of us have heard cocktail party talk about someone who had a lot of assets but managed to file bankruptcy and keep all of their stuff. Usually, the explanation has to do with exemptions and fully encumbered property. However, every once in a while, someone tries to play fast and loose with the...

The Making of a Trustee

By Russell D. Garrett TCMS Today Chapter 7 Panel Trustee Western District of Washington If someone had told me 29 years ago that I would be practicing law in the bankruptcy area I would have said they were crazy. At that time, I was living and working in San Francisco, single and considering...

LexisNexis® Legal News Podcast for Nov. 17, 2010-Madoff Bankruptcy Trustee Secures $1B Judgment Against Feeder Fund

A Madoff bankruptcy trustee secures an approximately $1 billion judgment against a feeder fund, and, the 5th Circuit affirms a boat owner took reasonable precautions in preparing for Hurricane Katrina. Hear these and other stories from LexisNexis® Mealey's™ Publications. Copyright©...

Tax Refund Satisfies Bankruptcy Trustee on Ponzi Funds

Ponzi schemer Scott Rothstein's former law partner, Stuart Rosenfeldt has agreed to settle a $10 million lawsuit against him for a fraction of the complaint, only $1.6 million. The settlement was disclosed Thursday in a settlement agreement filed in the bankruptcy of Rothstein and Rosenfeldt's...

Fifth Circuit Trusts (Chapter 7) Trustee's Interpretation of Trust

In an interesting ruling that has more to do with trust law than bankruptcy, the Fifth Circuit has ruled that a bankruptcy court incorrectly held that a trust was not property of the estate. Roberts v. McConnell , No. 10-50462 (5th Cir. 6/15/11) . You can find the opinion here [ an enhanced version...

Montana Blogger Tagged for Big Defamation Damages in Suit by Trustee

A Montana blogger has learned that First Amendment freedoms do not extend to saying that a bankruptcy trustee is "guilty of Fraud, Deceit on the Government, Illegal Activity, Money Laundering, Defamation, Harassment" among other things. In Obsidian Finance Group, LLC and Kevin D. Padrick...

Second Circuit Bars Trustee’s Claims Against Banks in Madoff Ponzi Scheme Case

by Kathy Bazoian Phelps The Madoff trustee and Madoff victims hoped to hold the banks liable for alleged wrongdoing. The banks hoped to escape liability on the theory that the Madoff trustee, standing in the shoes of Madoff’s company, was a wrongdoer that should be barred from suing the banks...

Madoff Trustee Reaches $98 Million Settlement With Feeder Fund

The trustee tasked with recovering funds for victims of Bernard Madoff's $65 billion Ponzi scheme announced he had reached a settlement with a Connecticut hedge fund that acted as a "feeder fund" in shoveling millions of dollars into Madoff's scheme. Irving Picard, the court-appointed...

Judge: Madoff Victims Not Entitled to Interest on Losses

"In this zero sum game where funds are limited, hard choices must be made....The plain language, purpose, framework and distribution scheme of SIPA, as well as (legal) precedent, all support the method chosen by the trustee" - U.S. Bankruptcy Judge Burton Lifland A federal bankruptcy judge...