LexisNexis® Legal Newsroom
A Digression for Bernie M.

Convicted swindler Bernie Madoff has relevance to the small and midcap worlds because this is where he lived mostly - in the penny stock world of small cap stocks. He was Chairman of the Nasdaq in its early years long before Microsoft was a household name. Apparently the narcissism never stops as...

Ben Feder of Kelley Drye & Warren Discusses the Madoff Trustee's Lawsuit Against the Owners of the New York Mets

On this edition, Benjamin D. Feder of Kelley Drye & Warren LLP discusses the background of the lawsuit filed by Irving Picard, trustee of Bernard L. Madoff Investment Securities LLC, against the Wilpon Group, owner of the New York Mets. Mr. Feder explains the issues involved in the lawsuit and the...

Is Madoff a Sociopath?

The New York magazine interview with Bernie Madoff has finally been published. Steve Fishman spoke with Madoff on the phone (collect calls from Madoff's prison) for several hours. And so, sitting alone with his therapist, in the prison khakis he irons himself, he seeks reassurance. "Everybody...

Podcast: Ben Feder Of Kelley Drye & Warren On Madoff Trustee Lawsuit Against Mets Owners

In this podcast, Benjamin D. Feder of Kelley Drye & Warren LLP discusses the background of the lawsuit filed by Irving Picard, trustee of Bernard L. Madoff Investment Securities LLC, against the Wilpon Group, owner of the New York Mets. Mr. Feder explains the issues involved in the lawsuit and the...

Looks Like Fred Wilpon Picked the Wrong Week to Quit Drinking

The well known travails of Fred Wilpon, the principal owner of the New York Mets, have all converged this past week. He, his partner Saul Katz and their families and affiliated enterprises (the "Wilpon/Katz Group") lost several hundred million dollars when Bernard Madoff's long running...

Mets' Owners Swing for the Fences Against Madoff Trustee

Fred Wilpon, Saul Katz, and their families and affiliated enterprises (the "Wilpon/Katz Group") last week formally requested the dismissal of the adversary proceeding commenced by Irving Picard, the trustee of Bernard L. Madoff Investment Securities LLC ("BLMIS") . In a two hour...

Book Review: No One Would Listen (Harry Markopolos on Bernie Madoff)

You can't really criticize Harry Markopolos. He was right. He had spotted something wrong with Bernie Madoff years before the biggest Ponzi scheme collapsed. Unlike many others, Markopolos contacted the Securities and Exchange Commission about his suspicions. They ignored him. Markopolos went...

Judge Dismisses $20 Billion in Madoff Claims Against JP Morgan and UBS

In a severe blow to the quest to recover funds for the benefit of victims of Bernard Madoff's $50 billion Ponzi scheme, a New York federal judge threw out $20 billion of common law claims that the court-appointed trustee had asserted against banking giants JP Morgan Chase & Co. ("JP...

Madoff Trustee Files Amended Complaint Seeking $226 Million From Madoff Family Members

The court-appointed trustee overseeing the unraveling of Bernard Madoff's massive Ponzi scheme has filed an amended complaint in which he is seeking the return of $226.4 million from several Madoff family members including Madoff's brother, sons, and niece (the "Madoff Defendants"...

SEC Disciplines Eight Employees Over Failure to Detect Madoff Fraud

The Securities and Exchange Commission disclosed that it had disciplined eight employees in connection with their failure to detect the massive Ponzi scheme orchestrated by Bernard Madoff. The employees received various forms of punishment over the past year that was made public by a Washington...

Madoff Trustee Agrees To $162 Million Settlement With New York Mets' Owners

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' alleged profiting from Madoff's massive Ponzi...

NY Times Column Criticizing Madoff Trustee Flawed on Many Levels

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 law firms and consultants than any victim of Mr...

Investors Settle with Madoff Feeder Fund Fairfield Greenwich for Up To $80.25 Million

A class of Madoff investors has settled with Fairfield Greenwich and its related entities for up to $80.25 million. These entities were Madoff feeder funds that had invested over $4.5 billion with Madoff. In their second amended complaint, the investors asserted claims of common law fraud federal...

Feeder Funds to Pay Nearly $220M to Settle Madoff Ponzi Scheme Fraud Claims

NEW YORK - Four Bernard L. Madoff Investment Securities LLC feeder funds and several of their current and former owners and officers have agreed to pay nearly $220 million to settle claims that they breached their fiduciary duties under the Employee Retirement Income Security Act by "recommending...

Feeder Funds To Pay Nearly $220 Million To Settle Madoff Ponzi Scheme Fraud Claims

NEW YORK - (Mealey's) Four Bernard L. Madoff Investment Securities LLC feeder funds and several of their current and former owners and officers have agreed to pay nearly $220 million to settle claims that they breached their fiduciary duties under the Employee Retirement Income Security Act by "recommending...

Valentine's Day Surprise for Madoff Victims as Trustee Seeks to Make Third Interim Distribution

Just in time for Valentine's Day, the court-appointed bankruptcy trustee overseeing the aftermath of Bernard Madoff's $65 billion Ponzi scheme has sought court approval to make a third distribution to victims. Irving Picard, the bankruptcy trustee, indicated his intention in today's court...

Duane Morris Alert: Narrow Interpretation of "Customer" Under SIPA Is Affirmed by the Second Circuit

The Second Circuit's affirmation of the narrow interpretation of customer under SIPA is likely to have a broad impact on the remaining Madoff cases before Judge Rakoff in the Southern District of New York, as well as the various SIPA cases currently working their way through courts across the...

Court Tosses Madoff Investors' Lawsuit Against SEC

Despite the 'regrettable inaction' by the Securities and Exchange Commission ("SEC") in failing to detect Bernard Madoff's historic $65 billion Ponzi scheme, a federal appeals court ruled that those victimized by Madoff's fraud could not hold the SEC accountable for negligence...

Bernie Madoff Investors' Lawsuit Against SEC Tossed By Federal Appeals Court

Despite the 'regrettable inaction' by the Securities and Exchange Commission ("SEC") in failing to detect Bernard Madoff's historic $65 billion Ponzi scheme, a federal appeals court ruled that those victimized by Madoff's fraud could not hold the SEC accountable for negligence...

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 Office Artwork, Including Warhol and Matisse Pieces, Set for Auction

A federal judge has cleared the way for the public auction of a vast collection of fine art that once graced the walls of Bernard Madoff's now-defunct brokerage firm. The collection, which is valued at nearly $600,000 and includes pieces by Henri Matisse, Pablo Picasso, and Andy Warhol (one piece...

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...

Court: Madoff Victims Can't Get Interest or Inflation on Losses

A New York federal appeals court sided with the court-appointed bankruptcy trustee for Bernard Madoff's massive Ponzi scheme in ruling that Madoff's victims were not entitled to have their losses upwardly adjusted for interest or inflation. The ruling by the Second Circuit Court of Appeals means...

Madoff Victims That Invested $1 Million or Less Will Soon Be Even

The court-appointed bankruptcy trustee overseeing the recovery of assets in Bernard Madoff's massive Ponzi scheme is seeking approval to distribute more than $1.25 billion to the notorious con man's victims - an effort that, if approved, will result in the full repayment of losses suffered by...