Thursday, January 5, 2012

Madoff feeder fund investors cannot recover: judge

Investors in "feeder funds" who lost money with Bernard Madoff do not qualify as customers of the now-imprisoned swindler, a federal judge ruled, according to a rpoert in the NY Post.

Thursday's decision by US District Judge Denise Cote in Manhattan upheld a June 2011 ruling by US Bankruptcy Judge Burton Lifland, who oversees the liquidation of Bernard L. Madoff Investment Securities LLC.

It is a victory for Irving Picard, the court-appointed trustee seeking money for Madoff's former customers. Picard had rejected claims made by customers that invested indirectly with Madoff through the feeder funds but did not have accounts with Madoff's firm.


Read more: http://www.nypost.com/p/news/local/madoff_feeder_fund_investors_cannot_zPryorX0S6LYC6gcRPDk2J#ixzz1ibU3wLzi

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