Parker Waichman LLP

Blockage of Madoff Bankruptcy Proceedings

Federal Judge Just Blocked the Assets of Bernard Madoff. A federal judge just blocked the assets of Bernard Madoff from being moved into bankruptcy, reports CNN. It seems the court found probable cause that the “assets should be forfeited to the government,” said CNN. Earlier this month, investors petitioned a federal judge to rescind an […]

Madoff Bankruptcy

Federal Judge Just Blocked the Assets of Bernard Madoff. A federal judge just blocked the assets of Bernard Madoff from being moved into bankruptcy, reports CNN. It seems the court found probable cause that the “assets should be forfeited to the government,” said CNN.

Earlier this month, investors petitioned a federal judge to rescind an order that prevented a forced bankruptcy. Federal prosecutors and the Securities and Exchange Commission (SEC) indicated they intend to seek forfeiture and disgorgement of Madoff’s assets in both the criminal and civil cases. But, according to the attorney representing the investors behind the bankruptcy petition, it is unclear if they intend to distribute any such funds to Madoff’s customers and what rules would govern any such distribution. The five investors were seeking nearly $64 million.

In a prior move, another federal judge allowed investors to proceed with the filing, saying that the proceedings were the investors best recourse for monetary recovery, said CNN. In addition to the SEC blocking the proceedings, the trustee handling Madoff’s liquidation and the U.S. Attorney’s office sought blockage, noted CNN.

Most recently, Irving Picard, the trustee brought in to liquidate Bernard L. Madoff’s Investment Securities LLC sued Kingate Management Ltd. for some $255 million transferred to the firm prior to the alleged Ponzi scheme’s demise, reported Bloomberg News in an earlier report. Reuters reported that the transactions occurred last October and November. Bloomberg News explained that Picard was appointed as trustee under the Securities Investor Protection Act to conduct an investigation into Madoff’s activities and assets. Picard has, to date, recovered about $1 billion, said Bloomberg News.

In an Attempt to Recover $150 Million.

In previous Madoff news, said Bloomberg, Picard sued Banque Jacob Safra (Gibraltar) Ltd. and Vizcaya Partners Ltd. in an attempt to recover $150 million, it withdrew from Madoff’s money-management business, said Reuters. Bloomberg said, according to information in the complaint, Kingate Global invested $963.5 million with Madoff from March 1994 to December 11 and Kingate Euro invested $767.4 million with Madoff starting January 1996, via 155 wire transfers to a JPMorgan Chase & Co. account.

Last week, court appointed liquidators in the United Kingdom sued Peter Madoff, Bernard Madoff’s brother, for recovery of a vintage Aston Martin, reported the Wall Street Journal. The car was purchased with monies derived from Madoff’s U.K. business, London-based Madoff Securities International Limited (MSIL). Just prior, a filing was made in New York for a personal involuntary bankruptcy for Bernard Madoff in an attempt to recover personal assets of Madoff and his relatives, said BizJournals. According to The Wall Street Journal, the filing said investors’ claims are based on breach of contract, conversion, and fraud. The filing also states that because of Madoff’s guilty plea in his criminal case, the claims are not disputed.

On March 12, Madoff pleaded guilty to 11 fraud counts in what is believed to be the largest Ponzi scheme in history. Last November, Madoff told his investors that his fund held more than $65 billion, but in reality, he only had a fraction of that amount. Since his guilty plea, Madoff has been held at the Manhattan Correctional Center and faces a June sentencing and up to 150 years in prison.

Need Legal Help Regarding Madoff Bankruptcy?

The personal injury attorneys at Parker Waichman LLP offer free, no-obligation case evaluations. For more information, fill out our online contact form or call 1-800-YOURLAWYER (1-800-968-7529).

[sc name=”post-footers”]

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
Today i just received my acceptance letter from the W.T.C and VCF just wanna say the excellent work of your employee trisha and christina morace did a fairy good job I would love them to represent me anytime Under any situation. A extra special thank you for that for those great employees.
andre facey
7 months ago
5 Star Reviews 150
Settled my case faster than expected! I didn’t have to deal with the paper work it all! PW is fantastic!
Erik Little
7 years ago
5 Star Reviews 150
Thank you for your help Cristian, you are doing a very good job.
L Puj
2 months ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038