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Madoff Trustee Asks the Second Circuit to Overturn Standing Rulings

by Kathy Bazoian Phelps Irving Picard, the trustee in the SIPA bankruptcy proceeding of Bernard L. Madoff Investment Securities, LLC, has asked the Second Circuit Court of Appeals to overturn two decisions from the Southern District of New York dismissing his common law claims against financial...

In Pari Delicto: Still a Defendant’s Best Friend in a Ponzi Scheme Case

Once again, the defense of in pari delicto has saved a defendant from a claim of professional negligence in a Ponzi scheme case. This time the case is Peterson v. Winston & Strawn, LLP , 2012 U.S. Dist. LEXIS 147653 (N.D. Ill. Oct. 10, 2012). Ronald Peterson is the trustee of two hedge funds, Lancelot...

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...