Thursday, September 29, 2011

Madoff trustee says ruling means $6B less for victims

Bernie Madoff trustee Irving Picard is crying foul over a federal court ruling, claiming the decision to toss much of his case against the owners of the Mets will also cut recovery for Madoff victims by nearly $6 billion, according to a report in the NY Post.

Manhattan federal judge Jed Rakoff threw out nine of 11 counts brought by Picard against Mets owners Fred Wilpon and Saul Katz, and limited the trustee to clawing back money withdrawn in just the two years prior to Madoff coming clean. The two-year limit caps the amount Picard can recover from the Mets at $386 million. Picard had been seeking $1 billion, including $300 million in alleged profits and $700 million in principal based on the life of their Madoff investment.

Madoff trustee Irving Picard struck out in his attempt to claw back six-years worth of profits from Madoff investors, which is a clearwin for Mets owner Fred Wilpon.

After a court hearing yesterday, a member of Picard’s legal team argued that it will also thwart his ability to collect money for thousands of Madoff victims. Picard may even put a stop to the first round of checks that was set to be mailed tomorrow to burned investors, according to David Sheehan, one of the trustee’s attorneys.


Read more: http://www.nypost.com/p/news/business/irv_decries_wolf_IIVhXsf1BtrY8WyEeGZUgO#ixzz1ZNBFKeUo

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