NEW YORK (Reuters) - investors in the "feeder Fund" which has lost money in the Bernard Madoff Ponzi scheme are not eligible as clients of the operator now-imprisoned, a federal judge decided Tuesday.
The decision of Judge Burton Lifland in New York is a victory for Irving Picard, the trustee of the liquidation of the firm of Madoff and search for money for the victims of the Madoff.
Picard dismissed requests for investors who have lost money after having invested as indirectly with Bernard l. Madoff Investment Securities LLC and who had no account y.
The Lifland decision also means that food fund investors are not eligible to receive up to $500,000 each from a federal fund designed to help customers of brokerage firms failed.
"The objecting claimants lack any of the traits typical of a client with BLMIS relationship, since they made no purchases transacted no business and had no dealings with brokers," wrote the judge. "" "". Conferring the status of client on the objecting claimants would extend that term entirely beyond its limits. »
Noting that many customers of feeder Fund had continued the funds themselves, Lifland said, "it is appropriate that the Fund and not the trustee, determine the specific amounts they owe to their customers".
Picard, in a statement, said that he was happy with "important precision Lifland.".
Helen Chaitman, a lawyer for some investors, did not immediately return calls seeking comment.
AGREEMENT OF GREENWICH SENTRY WINS APPROVAL
In the decision of Tuesday, Lifland had considered claims for clients to 16 funds for food that spilled at least some money to Madoff client. Nine were based in Delaware or New York and the rest in the Cayman Islands or the British Virgin Islands.
Many of these clients know how their money was invested and learned about their losses only after Madoff was arrested on December 11, 2008.
The U.S. Securities and Exchange Commission and the Securities Investor Protection Corp., which oversees the Fund for brokerage clients, agreed with Picard that feeder fund clients were not clients of Madoff.
Picard law has been approved with two bankruptcy fund affiliated with Fairfield Greenwich Group, the largest shipper of cash to Madoff separately, Lifland on Tuesday.
The trustee has agreed to drop claims of $ 212 million and in Exchange may pursue claims of funds against the owners of Fairfield and management, including financial Connecticut Walter Noel.
Picard in a separate statement said that agreement to add "value" to the assets of the bankruptcy and ultimately to customers.
Lifland had already approved the efforts of Picard to retrieve money from the former clients of Madoff that he considered "net winners", which means that they get more money from the Madoff firm that they have filed. The 2nd United States of the Court of appeal has yet to rule on an appeal by some investors of this decision of March 2010.
The trustee filed approximately 1 050 legal actions to recover more than 103 billion of banks, former customers and others, he told received or contributed to the Madoff fraud of validation.
Madoff, 73, pleaded guilty in 2009 and is serving a sentence of 150 years in prison.
(Reporting by Jonathan Stempel;) (Editing by Steve Orlofsky, Bernard Orr)
No comments:
Post a Comment