DOCSLIB.ORG

Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone 08-01789-smb Doc 8490 Filed 11/17/14 Entered 11/17/14 18:57:21 Main Document Pg 1 of 4 Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 David J. Sheehan Attorneys for Irving H. Picard, Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC and the Estate of Bernard L. Madoff UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION CORPORATION, Adv. Pro. No. 08-01789 (SMB) Plaintiff, SIPA LIQUIDATION v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. IRVING H. PICARD, Trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC, Adv. Pro. No. ________ (SMB) Plaintiff, v. DECLARATION OF KEITH R. MURPHY IN SUPPORT OF APPLICATION FOR A & G GOLDMAN PARTNERSHIP and PAMELA ENFORCEMENT OF THE GOLDMAN, PERMANENT INJUNCTION AND AUTOMATIC STAY Defendants. 08-01789-smb Doc 8490 Filed 11/17/14 Entered 11/17/14 18:57:21 Main Document Pg 2 of 4 KEITH R. MURPHY, under penalty of perjury, declares: 1. I am a member of the Bar of this Court and a partner at the firm of Baker & Hostetler LLP, counsel for Irving H. Picard, Trustee for the substantively consolidated liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”) under the Securities Investor Protection Act, 15 U.S.C. §§ 78aaa, et seq. (“SIPA”), and the estate of Bernard L. Madoff (“Madoff”), individually. 2. As an attorney of record in these proceedings, I am fully familiar with the facts set forth herein. I make this declaration to provide certain information to the Court and to transmit true and correct copies of the documents identified herein. 3. The Picower Parties1 are simultaneously filing a related action that seeks enforcement of the Permanent Injunction against the Goldman Plaintiffs. The Picower Parties are filing a motion to consolidate their action with the Trustee’s action. The Trustee consents to the consolidation of the actions. Counsel for the Goldman Plaintiffs was unwilling to take a position on the proposed consolidation of the actions until after the actions are filed. 4. True and correct copies of the following documents are attached: Exhibit A: Complaint, Picard v. Picower, Adv. Pro. No. 09-1197 (Bankr. S.D.N.Y. May 12, 2009), ECF No. 1 Exhibit B: Memorandum of Law in Opposition to Defendants’ Partial Motion to Dismiss Under Fed. R. Bankr. P. 7012(b) and 7009, Picard v. Picower, Adv. Pro. No. 09-1197 (Bankr. S.D.N.Y. Sept. 30, 2009), ECF No. 11 Exhibit C: Memorandum of Law in Support of Motion for Entry of an Order Pursuant to Section 105(a) of the Bankruptcy Code and Rules 2002 and 9019 of the Federal Rules of Bankruptcy Procedure Approving an Agreement By and Between the Trustee and the Picower BLMIS Account Holders and Enjoining Certain Claims, Picard v. 1 Unless otherwise defined herein, defined terms have the meaning given to them in the Trustee’s Memorandum of Law in Support of Application for Enforcement of the Permanent Injunction and Automatic Stay, filed on November 17, 2014. 2 08-01789-smb Doc 8490 Filed 11/17/14 Entered 11/17/14 18:57:21 Main Document Pg 3 of 4 Picower, Adv. Pro. No. 09-1197 (Bankr. S.D.N.Y. Dec. 17, 2010), ECF No. 25 Exhibit D: Permanent Injunction Order and Exhibit, Picard v. Picower, Adv. Pro. No. 09-1197 (Bankr. S.D.N.Y. Jan. 13, 2011), ECF No. 43 Exhibit E: Fox v. Picower, Adv. Pro. No. 10-80252 (S.D. Fla.), Initial Complaint, filed Feb. 16, 2010 (ECF No. 1) (without exhibits), and Amended Complaint, filed Mar. 15, 2010 (ECF No. 5) (without exhibits) Exhibit F: Marshall v. Picower, Adv. Pro. No. 10-80254 (S.D. Fla.) (without exhibits), Initial Complaint, filed Feb. 17, 2010 (ECF No. 1), and Amended Complaint, filed Mar. 15, 2010 (ECF No. 7) (without exhibits) Exhibit G: Fox Plaintiffs’ Proposed Second Amended Complaint, Fox v. Picower, No. 10-80252 (S.D. Fla. Feb. 5, 2014), ECF No. 28-3 Exhibit H: Motions of A&G Goldman Partnership and Pamela Goldman to Determine Application of Automatic Stay and Exhibit A, Sec. Inv. Prot. Corp. v. Bernard L. Madoff Inv. Sec. LLC, Adv. Pro. No. 08- 1789 (Bankr. S.D.N.Y. Dec. 13, 2011), ECF Nos. 4580, 4581 Exhibit I: Oral Argument Transcript, Goldman v. Picard, No. 12-6109 (S.D.N.Y. Sept. 24, 2013), ECF No. 34 Exhibit J: “Goldman II” Docket as of November 17, 2014, Goldman v. Capital Growth Co., No. 14-80012 (S.D. Fla. filed Jan. 6, 2014) Exhibit K: Complaint for Declaratory Judgment (without exhibits), Goldman v. Picower, No. 14-80012 (S.D. Fla. filed Jan. 6, 2014), ECF No. 1 Exhibit L: Second Goldman Complaint, Goldman v. Capital Growth Co., No. 14-80012 (S.D. Fla. filed Jan. 6, 2014), ECF No. 1-2 Exhibit M: “Goldman III” Docket as of November 17, 2014, Goldman v. Picard, No. 14-81125 (S.D. Fla. filed Aug. 28, 2014) Exhibit N: Third Goldman Complaint, Goldman v. Capital Growth Co., No. 14-81125 (S.D. Fla. filed Aug. 28, 2014), ECF No. 1 Exhibit O: Joint Stipulation and Agreed Motion for Stay, Goldman v. Capital Growth Co., No. 14-81125 (S.D. Fla. Sept. 24, 2014), ECF No. 4 3 08-01789-smb Doc 8490 Filed 11/17/14 Entered 11/17/14 18:57:21 Main Document Pg 4 of 4 Exhibit P: Order on Joint Stipulation and Agreed Motion for Stay, Goldman v. Capital Growth Co., No. 14-81125 (S.D. Fla. Sept. 29, 2014), ECF No. 6 I declare under penalty of perjury that the foregoing is true and correct. Executed on November 17, 2014 New York, New York _______/s/ Keith R. Murphy____ Keith R. Murphy 4 08-01789-smb Doc 8490-1 Filed 11/17/14 Entered 11/17/14 18:57:21 Exhibit A Pg 1 of 59 EXHIBIT A 09-01197-smb08-01789-smb Doc Doc 1 8490-1 Filed 05/12/09 Filed 11/17/14 Entered Entered 05/12/09 11/17/14 18:13:48 18:57:21 Main Document Exhibit A PgPg 21 ofof 5940 Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 David J. Sheehan Email: [email protected] Marc E. Hirschfield Email: [email protected] Attorneys for Irving H. Picard, Esq., Trustee for the SIPA Liquidation of Bernard L. Madoff Investment Securities LLC UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: SIPA LIQUIDATION BERNARD L. MADOFF INVESTMENT No. 08-01789 (BRL) SECURITIES LLC, Debtor. IRVING H. PICARD, Trustee for the Liquidation Adv. Pro. No. __________ (BRL) of Bernard L. Madoff Investment Securities LLC, Plaintiff, v. JEFFRY M. PICOWER, individually and as trustee for the Picower Foundation; BARBARA PICOWER, individually and trustee for the Trust FBO Gabrielle H. Picower and the Picower Foundation; CAPITAL GROWTH COMPANY; FAVORITE FUNDS; JA PRIMARY LIMITED PARTNERSHIP; JA SPECIAL LIMITED PARTNERSHIP; 09-01197-smb08-01789-smb Doc Doc 1 8490-1 Filed 05/12/09 Filed 11/17/14 Entered Entered 05/12/09 11/17/14 18:13:48 18:57:21 Main Document Exhibit A PgPg 32 ofof 5940 JAB PARTNERSHIP; JEMW PARTNERSHIP; JF PARNERSHIP; JFM INVESTMENT COMPANY; JLN PARTNERSHIP; JMP LIMITED PARTNERSHIP; JEFFRY M. PICOWER SPECIAL CO.; JEFFRY M. PICOWER, P.C.; DECISIONS INCORPORATED; THE PICOWER FOUNDATION; THE PICOWER INSTITUTE FOR MEDICAL RESEARCH; THE TRUST FBO GABRIELLE H. PICOWER; and DOES 1-25. Defendants. COMPLAINT Irving H. Picard, Esq. (the “Trustee”), as trustee for the liquidation of the business of Bernard L. Madoff Investment Securities LLC (“BLMIS”), under the Securities Investor Protection Act, 15 U.S.C. §§ 78aaa, et seq. (“SIPA”), by and through his undersigned counsel, for his Complaint, states as follows: NATURE OF PROCEEDING 1. This adversary proceeding arises from the massive Ponzi scheme perpetrated by Bernard L. Madoff (“Madoff”). In early December 2008, BLMIS generated client account statements for its nearly 7,000 client accounts at BLMIS. When added together, these statements purportedly show that clients of BLMIS had approximately $64.8 billion invested with BLMIS. -2- 09-01197-smb08-01789-smb Doc Doc 1 8490-1 Filed 05/12/09 Filed 11/17/14 Entered Entered 05/12/09 11/17/14 18:13:48 18:57:21 Main Document Exhibit A PgPg 43 ofof 5940 In reality, BLMIS had assets on hand worth a small fraction of that amount. On March 12, 2009, Madoff admitted to the fraudulent scheme and pled guilty to 11 felony counts. Defendants received avoidable transfers from BLMIS, and the purpose of this proceeding is to recover the avoidable transfers received by one or more of the Defendants. 2. Jeffry Picower (“Picower”) was a beneficiary of this Ponzi scheme for more than 20 years. Since December 1995, he and the other Defendants collectively profited from this scheme through the withdrawal of more than $6.7 billion dollars. The Trustee’s investigation to date has revealed that at least five billion dollars of this amount was fictitious profit from the Ponzi scheme. In other words, Defendants have received, at a minimum, more than five billion dollars of other people’s money. 3. Among other reasons, Defendants knew or should have known that they were profiting from fraud because of the implausibly high rates of return that their accounts supposedly achieved. Picower was one of a handful of BLMIS clients with special access to information from BLMIS, including access to information about BLMIS’ ‘target’ rates of return for Defendants’ accounts.
Load more

Recommended publications
  • 589-4201 Irving H
    Baker & Hostetler LLP Hearing Date: May 12, 2011 45 Rockefeller Plaza Hearing Time: 10:00 A.M. EST New York, New York 10111 Telephone: (212) 589-4200 Objection Deadline: May 5, 2011 Facsimile: (212) 589-4201 Time: 4:00 P.M. EST Irving H. Picard Email: [email protected] David J. Sheehan Email: [email protected] Seanna R. Brown Email: [email protected] Jacqlyn R. Rovine Email: [email protected] Attorneys for Irving H. Picard, Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC And Bernard L. Madoff UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION CORPORATION, Adv. Pro. No. 08-01789 (BRL) Plaintiff, SIPA Liquidation v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. SIXTH APPLICATION OF TRUSTEE AND BAKER & HOSTETLER LLP FOR ALLOWANCE OF INTERIM COMPENSATION FOR SERVICES RENDERED AND REIMBURSEMENT OF ACTUAL AND NECESSARY EXPENSES INCURRED FROM OCTOBER 1, 2010 THROUGH JANUARY 31, 2011 300147484 TO THE HONORABLE BURTON R. LIFLAND, UNITED STATES BANKRUPTCY JUDGE: Baker & Hostetler LLP (“B&H”), as counsel to Irving H. Picard, Esq., as trustee (the “Trustee”) for the substantively consolidated liquidation proceeding of Bernard L. Madoff Investment Securities LLC (“BLMIS”) under the Securities Investor Protection Act (“SIPA”), 15 U.S.C. § 78aaa et seq.,1 and Bernard L. Madoff (“Madoff”), individually (collectively, “Debtor”), respectfully submits this sixth application
    [Show full text]
  • Olo.Blmis.Timelineembedvertical2.8 Copy
    BLMIS LIQUIDATION TIMELINE 2008 2008 2008 2008 DEC 11 DEC 11 DEC 15 DEC 20 Bernard Madoff is arrested by The SEC files a complaint in the The U.S. District Court for the Less than one month after the the FBI and criminally charged District Court against defen- Southern District of New York discovery of the BLMIS fraud, with a multi-billion-dollar dants Madoff and Bernard L. appoints Irving H. Picard as SIPA the SIPA Trustee and his securities fraud scheme. Madoff Investment Securities Trustee for the liquidation of the counsel announce the recovery LLC (“BLMIS”) alleging that the Bernard L. Madoff Investment of $29 million from the Bank of defendants engaged in fraud Securities brokerage firm and New York, the first of the funds through investment advisor appoints Baker & Hostetler LLP stolen through the Ponzi scheme activities. as counsel to Mr. Picard. that are recovered. 2009 2009 2009 2009 JAN 2 JAN 2 APR 28 MAY 18 More than 8,000 claims forms The Trustee publishes notices in Castor Pollux Securities wins The SIPA Trustee files a lawsuit are mailed to victims of the major newspapers to victims the Court-approved auction of seeking the return of $3.2 billion fraud, with instructions for filing and creditors regarding the the BLMIS market-making from Fairfield Greenwich Group, by initial deadlines of March 4, liquidation of BLMIS. business assets for $1 million at one of the largest alleged 2009 and July 2, 2009; claims closing and up to $24.5 million in “feeder funds.” forms are also available for deferred compensation through download from the Internet.
    [Show full text]
  • Bernard Madoff A
    Brigham Young University Law School BYU Law Digital Commons Faculty Scholarship 12-31-2009 Evil Has a New Name (And a New Narrative): Bernard Madoff A. Christine Hurt BYU Law School, [email protected] Follow this and additional works at: https://digitalcommons.law.byu.edu/faculty_scholarship Part of the Banking and Finance Law Commons, and the Criminology and Criminal Justice Commons Recommended Citation A. Christine Hurt, ???? ??? ? ??? ???? (??? ? ??? ?????????): ??????? ??????, 2009 Mɪᴄʜ. Sᴛ. L. Rᴇᴠ. 947. This Symposium is brought to you for free and open access by BYU Law Digital Commons. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of BYU Law Digital Commons. For more information, please contact [email protected]. EVIL HAS A NEW NAME (AND A NEW NARRATIVE): BERNARD MADOFF Christine Hurt* 2009 MICH. ST. L. REV. 947 TABLE OF CONTENTS INTRODUCTION .................................. ....... 947 I. MADOFF'S EXTRAORDINARY CRIME.........................951 A. The Rise and Fall of Bernard L. Madoff Investment Securities..951 B. Madoff's Scheme as Affinity Fraud ..................... 957 II. VICTIMS SHAPE THE MADOFF NARRATIVE ....................... 959 A. Victim Impact Statements ................... ......... 961 B. Sentencing "Extraordinary Evil " ............. ........... 965 C. Restitution, Remission, and Compensation ......... ...... 968 1. Restitution ....................................... 968 2. SIPC Compensation ............................ 969 3. Tax Relief ................ .................
    [Show full text]
  • Is the Madoff Scandal Paradigmatic?
    IS THE MADOFF SCANDAL PARADIGMATIC? Too Good to Be True Erin V. Arvedlund New York, NY: Portfolio/Penguin, 2009 Betrayal Andrew Kirtzman New York, NY: Harper, 2009 No One Would Listen Harry Markopolos New York: Wiley, 2010 Madoff With The Money Jerry Oppenheimer New York: Wiley 2009 The Madoff Chronicles Brian Ross New York, NY: Hyperion, 2009 Catastrophe Deborah and Gerald Strober Beverly Hills, CA: Phoenix Books, 2009 Madoff’s Other Secret Sheryl Weinstein New York, NY: St Martin’s Press, 2009 Reviewed by John Graham and Kevin MacDonald Initially Bernard Madoff’s record-breaking $65 billion Ponzi scheme was reported in terms of how much harm he had done fellow Jews. Subsequently discussion focused on the ineptitude of the Securi- ties and Exchange Commission in not detecting and shutting down this fraud much earlier. 4 The Occidental Quarterly, vol. 10, no. 2, Summer 2010 We contend here that the now extensive literature reveals that the Madoff phenomenon was in fact a massive shift of resources from non-Jews to Jews. Prime beneficiaries extended beyond the Madoff family to a number of other members of the Jewish elite. The scam uti- lized familiar Jewish social traits to reach the size it did. Far from be- ing protected by SEC ineptitude, it was Madoff’s perceived position as part of the Jewish Establishment that put him beyond the law — by intimidating the SEC. This was accentuated by traditional Jewish in- hibitions on reporting Jewish criminality. We suggest that Madoff’s self-destructive as well as socially damaging behavior stemmed ulti- mately from the conditionality inherent in the Jewish attitude to socie- ty at large — and is not unique to him.
    [Show full text]
  • X 6 in Re Optimal U.S
    CONFIDENTIAL 1 1 ** CONFIDENTIAL ** 2 UNITED STATES DISTRICT COURT 3 SOUTHERN DISTRICT OF NEW YORK 4 5 -----------------------X 6 IN RE OPTIMAL U.S. : CASE NO.: 10-cv-4095(SAS) 7 LITIGATION : 8 -----------------------X 9 10 11 12 13 14 DEPOSITION OF BERNARD L. MADOFF 15 (Taken by the Plaintiffs) 16 Butner, North Carolina 17 August 7, 2012 18 7:51 a.m. 19 20 21 22 23 24 Reported by: Lisa A. DeGroat, RPR Notary Public 25 VERITEXT REPORTING COMPANY (212) 279-9424 www.veritext.com (212) 490-3430 CONFIDENTIAL 2 4 1 A P P E A R A N C E S 1 S T I P U L A T I O N S 2 Before testimony was taken, it was stipulated 2 For the Plaintiffs: by and between counsel representing the respective 3 JAVIER BLEICHMAR, Esq. 3 parties as follows: ALAN I. ELLMAN, Esq. 4 1. That any defect in the notice of the taking of this deposition, either as to time or 4 Labaton Sucharow, L.L.P. 5 place, or otherwise as required by statute is 140 Broadway expressly waived, and this deposition shall have the 6 same effect as if formal notice in all respects as 5 New York, New York 10005 required by statute had been given and served upon (212) 907-0887 7 the counsel in the manner prescribed by law. 6 [email protected] 8 2. That this deposition shall be taken for the purpose of discovery or for use as evidence in 7 9 the above-entitled action, or for both purposes.
    [Show full text]
  • Bernard Madoff
    Brigham Young University Law School BYU Law Digital Commons Faculty Scholarship 12-31-2009 Evil Has a New Name (And a New Narrative): Bernard Madoff A. Christine Hurt BYU Law School, [email protected] Follow this and additional works at: https://digitalcommons.law.byu.edu/faculty_scholarship Part of the Banking and Finance Law Commons, and the Criminology and Criminal Justice Commons Recommended Citation A. Christine Hurt, Evil Has a New Name (And a New Narrative): Bernard Madoff, ( ,): , 2009 Mɪᴄʜ. Sᴛ. L. Rᴇᴠ. 947. This Symposium is brought to you for free and open access by BYU Law Digital Commons. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of BYU Law Digital Commons. For more information, please contact [email protected]. EVIL HAS A NEW NAME (AND A NEW NARRATIVE): BERNARD MADOFF Christine Hurt* 2009 MICH. ST. L. REV. 947 TABLE OF CONTENTS INTRODUCTION .................................. ....... 947 I. MADOFF'S EXTRAORDINARY CRIME.........................951 A. The Rise and Fall of Bernard L. Madoff Investment Securities..951 B. Madoff's Scheme as Affinity Fraud ..................... 957 II. VICTIMS SHAPE THE MADOFF NARRATIVE ....................... 959 A. Victim Impact Statements ................... ......... 961 B. Sentencing "Extraordinary Evil " ............. ........... 965 C. Restitution, Remission, and Compensation ......... ...... 968 1. Restitution ....................................... 968 2. SIPC Compensation ............................ 969 3. Tax Relief ...............
    [Show full text]
  • The Social Organization of Secrecy and Deception
    STXXXX10.1177/0735275114558631Sociological TheoryGibson 558631research-article2014 Article Sociological Theory 2014, Vol. 32(4) 283 –306 Enduring Illusions: The Social © American Sociological Association 2014 DOI: 10.1177/0735275114558631 Organization of Secrecy and stx.sagepub.com Deception David R. Gibson1 Abstract Sociologists theorize that people comply with the dictates of states and other organizations out of self-interest or because of the perceived legitimacy of those in authority. Some organizations, however, are based on lies, or secrets, and it would seem that these should be very short-lived, given how easy it is for the truth to escape. This article lays the foundations of a sociology of deception, focusing on lies and secrets successfully maintained for years or even decades. The ideas of Goffman and Simmel provide a theoretical starting point. Then Bernard Madoff’s Ponzi scheme is considered as a case study. Drawing on that and other examples, the article culminates in a theory that distinguishes between barriers to knowing, barriers to asking, barriers to telling, barriers to perceiving, barriers to believing, and barriers to acting. Together, these may counter the natural entropic tendency for information to leak and diffuse, in part because the effectiveness of one sort of barrier may offset imperfections in others. Keywords deception, secrecy, organizations, interaction Social theorists often suppose that social order rests on the perceptions of the ruled, and most often these are taken to be accurate. Weber ([1921] 1978), for instance, argued that a viable political community requires leaders who are perceived as legitimate, whether by virtue of tradition (power is exercised as it always has been), charisma (the leader possesses certain extraordinary virtues), or law (office-holders were lawfully appointed, and their powers are closely circumscribed).
    [Show full text]
  • First Interim Trustee Report.DOC
    Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 Irving H. Picard Email: [email protected] David J. Sheehan Email: [email protected] Attorneys for Irving H. Picard, Esq. Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC And Bernard L. Madoff UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION Adv. Pro. No. 08-1789 (BRL) CORPORATION, Plaintiff-Applicant, SIPA Liquidation v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. TRUSTEE’S FIRST INTERIM REPORT FOR THE PERIOD DECEMBER 11, 2008 THROUGH JUNE 30, 2009 300016705 TABLE OF CONTENTS I. INTRODUCTION ...............................................................................................1 II. BACKGROUND .................................................................................................2 III. PROCEDURAL HISTORY .................................................................................5 IV. LIQUIDATION PROCEEDING..........................................................................5 V. ADMINISTRATION OF THE ESTATE..............................................................7 A. RETENTION OF PROFESSIONALS ............................................................7 B. MARSHALLING AND LIQUIDATION OF ESTATE ASSETS ...................8 C. WIND-DOWN OF ESTATE OPERATIONS...............................................15 VI. FINANCIAL
    [Show full text]
  • Baker & Hostetler LLP 45 Rockefeller Plaza New
    Baker & Hostetler LLP Hearing Date: October 19, 2011 45 Rockefeller Plaza Hearing Time: 10:00 A.M. EST New York, New York 10111 Telephone: (212) 589-4200 Objection Deadline: October 5, 2011 Facsimile: (212) 589-4201 Time: 4:00 P.M. EST Irving H. Picard Email: [email protected] David J. Sheehan Email: [email protected] Seanna R. Brown Email: [email protected] Jacqlyn R. Rovine Email: [email protected] Attorneys for Irving H. Picard, Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC And Bernard L. Madoff UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION CORPORATION, Adv. Pro. No. 08-01789 (BRL) Plaintiff, SIPA Liquidation v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. SEVENTH APPLICATION OF TRUSTEE AND BAKER & HOSTETLER LLP FOR ALLOWANCE OF INTERIM COMPENSATION FOR SERVICES RENDERED AND REIMBURSEMENT OF ACTUAL AND NECESSARY EXPENSES INCURRED FROM FEBRUARY 1, 2011 THROUGH MAY 31, 2011 TABLE OF CONTENTS Page I. PRELIMINARY STATEMENT ....................................................................................... 1 II. BACKGROUND ............................................................................................................... 6 A. THE SIPA LIQUIDATION ................................................................................... 6 B. THE TRUSTEE, COUNSEL, AND CONSULTANTS ........................................ 8 C. PRIOR COMPENSATION
    [Show full text]
  • An Exploration of an Alternative Remedy for Victims of Ponzi Schemes*
    NET EQUITY ONLY COMES WITH NET EQUALITY: AN EXPLORATION OF AN ALTERNATIVE REMEDY FOR * VICTIMS OF PONZI SCHEMES I. INTRODUCTION Amid the financial catastrophe that persists in the United States today, one of the most damaging contributors unmasked is the array of fraudulent investment scams that have appeared in federal courts.1 Although some justice is seen as fraudsters such as Bernard Madoff and R. Allen Stanford sit in prison,2 such a consequence does not resolve the devastating financial loss that individuals and charitable organizations have suffered as a result of such schemes. Upon the collapse of such a criminal plot, the court often appoints a trustee3 to liquidate the conspirator’s estate and recover as much of the phony investment as possible for purposes of equitable distribution among innocent investors.4 As one theorist put it, the fantasy that the trustee will locate colossal bank accounts in the Caymans to fully compensate victims is generally replaced by the stunning actuality that “the elusive ‘pot of gold’ is in the pockets of the innocent victims who invested with the schemer.”5 Consequently, compensation often involves the “clawback” of various payments made before the scheme collapses.6 Despite a long history of such schemes, the circuit courts have been unable to settle on a consistent and proper remedy for the innocent investors; in some instances, those who innocently profit from * Alex S. Weiner, J.D. Candidate, Temple University James E. Beasley School of Law, 2012. Sincere thanks to my faculty advisor, Professor William J. Woodward, Jr., and the Editorial Board of Temple Law Review for their guidance and dedication in publishing this piece.
    [Show full text]
  • CAPITALISM, KINSHIP, and FRAUD the Case of Bernie Madoff
    UCLA UCLA Previously Published Works Title CAPITALISM, KINSHIP, AND FRAUD The Case of Bernie Madoff Permalink https://escholarship.org/uc/item/1kf0t8qz Journal SOCIAL ANALYSIS, 63(3) ISSN 0155-977X Author Ortner, Sherry B Publication Date 2019-09-01 DOI 10.3167/sa.2019.630301 Peer reviewed eScholarship.org Powered by the California Digital Library University of California CAPITALISM, KINSHIP, AND FRAUD The Case of Bernie Madoff Sherry B. Ortner Abstract: Investment broker Bernie Madoff ran what is still considered the largest Ponzi scheme in history, defrauding thousands of investors over a 20-year period of more than $20 billion. He worked his game almost entirely through kinship connections—relatives, friends of rela- tives, and relatives of friends. The relationship between kinship and capitalism has drawn renewed attention by anthropologists, part of a broader effort to rethink capitalism not as a free-standing ‘economy’ but as deeply embedded in a wide range of social relations. In this article I use the Madoff case to illustrate, and develop further, several aspects of the kinship/capitalism connection. I also consider briefly the boundary between fraud and ‘legitimate’ capitalism, which many economic historians consider a fuzzy boundary at best. Keywords: boundaries, capitalism, feminist perspective, fraud, Jewish community, kinship, patriarchy In December 2008, in the midst of what many have called the greatest American financial crisis since the crash of the stock market in 1929, a securities broker named Bernard L. Madoff (MAY-doff) was arrested for conducting what is now considered the biggest Ponzi scheme in history. It involved the largest amount of money ever seen in such a scheme, went on longer than any other known scheme, and involved more victims over more of the globe than any scheme on record.
    [Show full text]
  • April 25, 2012 Seventh Interim Report
    08-01789-brl Doc 4793 Filed 04/25/12 Entered 04/25/12 18:26:02 Main Document Pg 1 of 73 Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 Irving H. Picard Email: [email protected] David J. Sheehan Email: [email protected] Seanna R. Brown Email: [email protected] Attorneys for Irving H. Picard, Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC And Bernard L. Madoff UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION CORPORATION, Adv. Pro. No. 08-01789 (BRL) Plaintiff-Applicant, SIPA Liquidation v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. TRUSTEE’S SEVENTH INTERIM REPORT FOR THE PERIOD ENDING MARCH 31, 2012 08-01789-brl Doc 4793 Filed 04/25/12 Entered 04/25/12 18:26:02 Main Document Pg 2 of 73 TABLE OF CONTENTS Page I. EXECUTIVE SUMMARY ............................................................................................... 1 II. BACKGROUND ............................................................................................................... 4 III. FINANCIAL CONDITION OF ESTATE ......................................................................... 4 IV. ADMINISTRATION OF THE ESTATE .......................................................................... 5 A. Marshaling And Liquidating The Estate Assets .................................................... 5 B. Retention Of Professionals
    [Show full text]