DOCSLIB.ORG

We Represent the Citco Defendants in the Action Referenced Above

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
We Represent the Citco Defendants in the Action Referenced Above Anwar et al v. Fairfield Greenwich Limited et al Doc. 1348 PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP MATTHEW W. ABBOTT MEREDITH J. KANE ALLAN J. ARFFA ROBERTA A. KAPLAN ROBERT A. ATKINS BRADS. KARP DAVID J. BALL PATRICK N. KARSNITZ 1285 AVENUE OF THE AMERICAS UNIT 3601, OFFICE TOWER A, BEIJING FORTUNE PLAZA JOHN F. BAUGHMAN JOHN C. KENNEDY LYNN B. BAYARD ALAN W. KORNBERG NEW YORK, NEW YORK 1001 9-6064 NO. 7 DONGSANHUAN ZHONGLU DANIEL J BELLER DANIEL J. KRAMER CHAOYANG DISTRICT CRAIG A. BENSON DAVID K LAKHDHIR TELEPHONE (212) 373-3000 MITCHELL L. BERG STEPHEN P LAMB• BEIJING I 00020 MARK S. BERGMAN JOHN E. LANGE PEOPLE'S REPUBLIC OF CHINA BRUCE BIRENBOIM DANIEL J. LEFFELL LLOYD K. GARRISON ( 1946-1991) H. CHRISTOPHER BOEHNING XIAOYU GREG LIU TELEPHONE (86-10) 5828-6300 ANGELO BONVINO JEFFREY D. MARELL RANDOLPH E. PAUL ( 1946-1956) JAMES L BROCHIN MARCO V. MASOTTI RICHARD J. BRONSTEIN EDWIN S. MAYNARD SIMON H. RIFKINO ( 1950-1995) DAVID W. BROWN DAVID W. MAYO LOUIS S. WEISS ( 1927-1950) I 2TH FLOOR, HONG KONG CLUB BUILDING SUSANNA M. BUERGEL ELIZABETH R. MCCOLM 3A CHATER ROAD, CENTRAL PATRICK 5. CAMPBELL* MARK F. MENDELSOHN JOHN F. WHARTON (1927-1977) JESSICA$. CAREY WILLIAM B MICHAEL HONG KONG JEANETTE K. CHAN TOBY S. MYERSON YVONNE Y. F. CHAN TELEPHONE (852} 2846-0300 CATHERINE NYARAOY LEWIS R. CLAYTON JANE B O'BRIEN JAY COHEN ALEX YOUNG K OH KELLEY A. CORNISH BRAD R. OKUN ALDER CASTLE CHRISTOPHER J. CUMMINGS KELLEY D PARKER CHARLES E DAVIDOW MARC E PERLMUTTER I 0 NOBLE STREET DOUGLAS R. DAVIS VALERIE E RADWANER WRITER'S DIRECT DIAL NUMBER LONDON EC2V 7JU, U.K. THOMAS V DE LA BASTIDE 111 CARLL. REISNER ARIEL J. DECKELaAUM WALTER G. RICCIARDI TELEPHONE f 44 20) 7367 t 600 ALICE BELISLE EATON WALTER RIEMAN ANDREW J. EHRLICH RICHARD A. ROSEN 212-373-3260 GREGORY A. EZRI NG ANDREW N. ROSENBERG LESLIE GORDON FAGEN JACQUELINE P. RUBIN FUKOKU SEIMEI BUILDING MARC FALCONE RAPHAEL M. RUSSO WRITER'S DIRECT FACSIMILE 2-2 UCHISAJWAICHO 2-CHOME ROSS A FIELDSTON JEFFREY D SAFERSTEIN ANDREW C. FINCH JEFFREY B. SAMUELS CHJYODA-KU, TOKYO 100-0011, JAPAN BRAD J. FINKELSTEIN DALE M. SARRO BRIAN P. FINNEGAN TERRYE. SCHIMEK 212-492-0260 TELEPHONE (81-3) 3597-8101 ROBERTO FINZI KENNETH M. SCHNEIDER PETER E. FISCH ROBERT B. SCHUMER ROBERT C FLEDER JAMES H. SCHWAB WRITER'S DIRECT E-MAIL ADDRESS TORONTO-DOMINION CENTRE MARTIN FLUMENBAUM JOHN M. SCOTT ANDREW J. FOLEY STEPHEN J. SHIMSHAK 77 KING STREET WEST, SUITE 31 00 HARRIS B. FREIDUS DAVID R SICULAR MANUEL S. FREY MOSES S:LVERMAN [email protected] PO BOX 226 ANDREW L. GAINES STEVEN SIMKIN TORONTO, ONTARIO MSK tJ3 KENNETH A. GALLO JOSEPH J. SIMONS MICHAELE. GERTZMAN MARILYN SOBEL TELEPHONE (416) 504-0520 ADAM M GIVERTZ AUDRA J. SOLOWAY SALVATORE GOGLIORMELLA SCOTT M. SONTAG ROBERT D. GOLDBAUM TARUN M. STEWART NEIL GOLDMAN ERIC ALAN STONE 2001 K STREET, NW ERIC S. GOLDSTEIN AIDAN SYNNOTT WASHINGTON, DC 20006-1047 ERIC GOODISON ROBYN F. TARNOFSKY CHARLES H. GOOGE, JR. MONICA K. THURMOND TELEPHONE (202) 223-7300 ANDREW G. GORDON DANIEL J. TOAL UDIGROFMAN LIZA M VELAZQUEZ NICHOLAS GROOMBRIDGE MARIA T. VULLO December 24, 2014 BRUCE A. GUTENPLAN 500 DELAWARE AVENUE, SUITE 200 ALEXANDRA M. WALSH* GAINES GWATHMEY, 111 LAWRENCE G WEE POST OFFICE BOX 32 ALAN S. HALPERIN THEODORE V. WELLS, JR. JUSTING. HAMILL BETH A. WILKINSON WILMINGTON, DE 19899-0032 CLAUDIA HAMMERMAN STEVEN J WILLIAMS TELEPHONE (302J 655-4410 GERARD E. HARPER LAWRENCE I. WITOORCHIC BRIANS. HERMANN MARK 8. WLAZLO The Honorable Victor Marrero ROBERT M. HIRSH JULIA MASON WOOD MICHELE HIRSHMAN JORDAN E. YARETT MICHAELS. HONG KAYE N. YOSHINO United States District Judge DAVIDS. HUNTINGTON TONG YU LORETTA A. IPPOLITO TRACEY A. ZACCONE Daniel Patrick Moynihan JAREN JANGHORBANI T. ROBERT ZOCHOWSKI, JR. United States Courthouse 500 Pearl Street, Room 1040 New York, New York 10007-1312 ＺＡ［ＱＱＨＧｾ＠ ｜ｾｾ＠ ｾ｜ﾷＺ＠ '! Anwar, et al. v. Fairfield Greenwich Limited,' ｾＧｴｾｊＮｾｃＮ＠ l ｬｾ＠ ( )\. :c. \ [ _L'i' 1·! ｉＮｴｾｄ＠ . ' I lU(' tt· No. 09-cv-118 (S.D.N.Y.) (VM) (FM)i I - r · ----------f_r; ［ＬｾｾＭﾷＭ ;ｾＡｾｾﾷｾｔｬ＠ -! Ａ｟｟ｉ｟ｾ＠ ｉｾ＾＠ __L!_Jf.-'J ___ _ ＭＭＭＭｾＭＭﾷﾷ＠ Dear Judge Marrero: L:::------· .. -- H We represent the Citco Defendants in the action referenced above. A recent summary order of the Second Circuit, Elendow Fund, LLC v. Rye Investment Management, No. 13-3642-cv, 2014 WL 7090618 (2d. Cir. Dec. 16, 2014) (copy enclosed as Exhibit A), aff'g No. 10 Civ. 9061, 2013 WL 5179064 (S.D.N.Y. Sept. 16, 2013) (copy enclosed as Exhibit B), further demonstrates that plaintiffs' pending motion for class certification should be denied. In particular, Elendow further supports the Citco Defendants' argument that plaintiffs' common-law holder claims do not satisfy Rule 23(b)(3)'s superiority requirement because those claims are derivative, not direct, in nature. (See the Citco Defendants' Memorandum of Law in Opposition to Plaintiffs' Motion for Class Certification ("Citco Opp. Br."), filed under seal on Sept. 15, 2014, at 18-22, ECF No. 1323.). In Elendow, the plaintiff investor (Elendow) invested money in the Rye Select Broad Market XL Fund (the "XL Fund"), a Madofffeeder fund. Like Anwar, Elendow involved, among other claims, a claim for breach of fiduciary duty based on the allegation that a plaintiff investor "purchased and/or held interests" in an investment fund as a result of the fund's failure to provide complete and accurate disclosures. (Elendow Compl. irir 156-58, No. 10 Civ. 9061 (TPG) (S.D.N.Y.), ECF No. 21.) The fund, in turn, Dockets.Justia.com PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP The Honorable Victor Marrero 2 United States District Judge had exposure to assets managed by Bernard Madoff and collapsed when his frauds were revealed. 1 In dismissing the claim for breach of fiduciary duty, the district court held that the "holder" claim for breach of fiduciary duty was derivative in nature. Elendow, 2013 WL 5179064, at *9. Significantly, the district court rejected Elendow's argument "that its injury was separate from its pro rata share of the injury to the XL Fund because defendants breached their fiduciary duties to it while inducing it to invest." Id. The district court reasoned that any fiduciary duty arose only after Elendow had invested in the XL Fund and that Elendow therefore could not predicate this claim on alleged breaches "when it was still merely a prospective investor." Id. The district court further reasoned that Elendow had no standing to assert the holder claim "[t]o the extent the complaint claims that defendants breached their fiduciary duties ... in their management of the XL Fund after Elendow ... joined as a limited partner" because such a claim could be brought only derivatively under Delaware law.2 Id. In affirming the district court's ruling that the "holder" claim for breach of fiduciary duty was derivative under Delaware law, the Second Circuit explained: El endow' s damages would be measured by the difference between the values of its investments before and after the XL Fund suffered losses in its Madoff investments. As Elendow's injury is intertwined with the XL Fund's injury, Elendow's action may be brought only as a derivative action. See Feldman v. Cutaia, 951 A.2d 727, 733 (Del. 2008). Elendow, 2014 WL 7090618, at *2. Like the Elendow plaintiff, the Anwar plaintiffs seek damages based on alleged mismanagement that purportedly caused the dissipation of fund assets. (Citco Opp. Br. 20-21.) Accordingly, as in Elendow, the Anwar plaintiffs' alleged injury is Although the Elendow plaintiff asserted other common-law claims, including fraud and negligent- misrepresentation claims, those claims were purchase-based inducement claims, not holder claims, and were dismissed on other grounds. See Elendow, 2014 WL 7090618, at *1-2; Elendow, 2013 WL 5179064, at *7-9; Elendow Compl. ｾｾ＠ 134, 136-38, 143. In contrast, here, all of the Anwar plaintiffs' common-law claims are holder claims based on allegations of fund mismanagement while plaintiffs were fund investors. (See Citco Opp. Br. 20-21.) 2 The Elendow parties did not dispute that the breach of fiduciary duty claim was governed by Delaware law because, under New York Partnership Law§ 121-901, "the laws of the jurisdiction under which a foreign limited partnership is organized govern its organization and internal affairs." (See Citco Opp. Br. 19.) Although this Court previously concluded that New York law applied to plaintiffs' holder claims, it did not consider New York Partnership Law§ 121-901. Under applicable choice-of-law rules, Delaware and British Virgin Islands law govern whether plaintiffs' common-law holder claims for the funds at issue are direct or derivative in nature. (Citco Opp. Br. 18-20.) In all events, plaintiffs' holder claims are derivative under New York law. (Id. at 20 n.29.) PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP The Honorable Victor Marrero 3 United States District Judge intertwined with the funds' alleged injuries, and the holder claims should be dismissed for the same reason-namely, because they are derivative. We also note that in both the district court and the Second Circuit, the Elendow plaintiff relied on this Court's prior ruling on the motions to dismiss to argue that its claim for breach of fiduciary duty in Elendow was direct in nature. (See Plaintiffs Memorandum of Law in Opposition to the XL Fund's Motion to Dismiss the Second Amended Complaint at 2, No. 10 Civ. 09061 (S.D.N.Y.), ECF No. 70 (citing Anwar v. Fairfield Greenwich Ltd., 728 F. Supp. 2d 372, 402 (S.D.N.Y. 2010)); Reply Br.
Load more

Recommended publications
  • Exhibit a Pg 1 of 40
    09-01161-smb Doc 246-1 Filed 03/04/16 Entered 03/04/16 10:33:08 Exhibit A Pg 1 of 40 EXHIBIT A 09-01161-smb Doc 246-1 Filed 03/04/16 Entered 03/04/16 10:33:08 Exhibit A Pg 2 of 40 Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 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, No. 08-01789 (SMB) Plaintiff-Applicant, 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, Plaintiff, Adv. Pro. No. 09-1161 (SMB) v. FEDERICO CERETTI, et al., Defendants. 09-01161-smb Doc 246-1 Filed 03/04/16 Entered 03/04/16 10:33:08 Exhibit A Pg 3 of 40 TRUSTEE’S FIRST SET OF REQUESTS FOR PRODUCTION OF DOCUMENTS AND THINGS TO DEFENDANT KINGATE GLOBAL FUND, LTD. PLEASE TAKE NOTICE that in accordance with Rules 26 and 34 of the Federal Rules of Civil Procedure (the “Federal Rules”), made applicable to this adversary proceeding under the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) and the applicable local rules of the United States District Court for the Southern District of New York and this Court (the “Local Rules”), Irving H.
    [Show full text]
  • 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]
  • Wexler V KPMG LLP 2014 NY Slip Op 30825(U) April 1, 2014 Supreme Court, New York County Docket Number: 101615/09 Judge: Richard B
    Wexler v KPMG LLP 2014 NY Slip Op 30825(U) April 1, 2014 Supreme Court, New York County Docket Number: 101615/09 Judge: Richard B. Lowe III Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various state and local government websites. These include the New York State Unified Court System's E-Courts Service, and the Bronx County Clerk's office. This opinion is uncorrected and not selected for official publication. [* 1] SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: IAS PART 56 ----------------------------------------------------------------------------){ JAY WE){LER, individually and derivatively on behalf of Rye Select Broad Market Prime Fund, L.P., Plaintiff, Index No. 101615/09 -against- KPMG LLP; KPMG UK; KPMG INTERNATIONAL; JP MORGAN CHASE & CO.; THE BANK OF NEW YORK MELLON; TREMONT PARTNERS, INC.; TREMONT GROUP HOLDINGS, INC.; TREMONT CAPITAL MANAGEMENT, INC.; OPPENHEIMER ACQUISITION CORPORATION; MASSACHUSETTS MUTUAL LIFE INSURANCE; SANDRA L. MANZKE; ROBERT I. SCHULMAN; PAUL KONIGSBERG; ANNETTE BONGIORNO; FRANK DIPASCALI; ANDREW MADOFF; MARK MADOFF; PETER MADOFF; and JOHN DOES 1 THROUGH 30, Defendants, Rye Select Broad Market Prime Fund L.P., Nominal Defendant. ----------------------------------------------------------------------------){ RICHARD B. LOWE, III, J: The following defendants' motions to dismiss are consolidated for disposition: Massachusetts Mutual Life Insurance Company (Mass Mutual), under motion sequence number 022; Oppenheimer Acquisition Corp. (Oppenheimer), under motion sequence number 030; Rye . Select Broad Market Prime Fund, L.P. (Rye Select Fund), under motion sequence number 032; Sandra Manzke (Manzke), under motion sequence number 033; and Tremont Partners, Inc. (Tremont Partners), Tremont Group Holdings, Inc. (Tremont Group), Tremont Capital Management, Inc.
    [Show full text]
  • Individual Factors: Moral Philosophies and Values 153
    CHAPTER 6 B E L L , F E L E C I A 2 0 INDIVIDUAL FACTORS:9 MORAL PHILOSOPHIES5 AND VALUES B U ©Stanislav Bokrach,©Stanislav Shutterstock Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. CHAPTER OBJECTIVES CHAPTER OUTLINE t To understand how moral philosophies and Moral Philosophy Defined values influence individual and group ethical Moral Philosophies decision making in business Instrumental and Intrinsic Goodness To compare and contrast the teleological, t Teleology deontological, virtue, and justice perspectives of moral philosophy B Deontology E Relativist Perspective t To discuss the impact of philosophies Virtue Ethics on business ethics L Justice t To recognize the stages of cognitive moral L development and its shortcomings , Applying Moral Philosophy to Ethical Decision Making t To introduce white-collar crime as it relates Cognitive Moral Development to moral philosophies, values, and corporateF culture White-Collar Crime E Individual Factors in Business Ethics L E AN ETHICAL DILEMMA* C One of the problems that Lael Matthews has had to to promoting Liz might be a perception that Lael is deal with in trying to climb the corporate ladder is I playing favorites. the glass ceiling faced by minorities and women. AndA Roy is a 57-year-old Caucasian, married with now, in her current position, she must decide which three children, who graduated from a private of three managers to promote, a decision that, as university in the top half of his class.
    [Show full text]
  • Abstract the Importance of Private Fund Investor Due Diligence in The
    2016-2017 PRIVATE FUND INVESTOR DUE DILIGENCE 257 PRIVATE FUND INVESTOR DUE DILIGENCE: EVIDENCE FROM 1995 TO 2015 WULF A. KAAL* Abstract The importance of private fund investor due diligence in the investment allocation process, capital formation, and private fund litigation has reached unprecedented levels and is increasing further. To provide the industry with data, data trend analyses, and guidance on applicable legal standards, the author examines two datasets: (1) private investment fund advisers’ SEC Form ADV II filings from 2007 to 2014 (N=100392), and (2) the publicly available litigation record pertaining to private fund investor due diligence from 1995 to 2015 (N=572). After highlighting important changes in the quality and quantity of private fund investor due diligence in SEC Form ADV Part II, the author evaluates the corresponding litigation record and analyzes expert guidance on applicable best practices. * Associate Professor, University of Saint Thomas School of Law (Minneapolis). The author would like to thank the many practitioners who contributed to this article. Special thanks go to Tom Joyce, Steve Adams, and Bentley Anderson as well as anonymous representatives of the private investment fund industry and its lobby groups. Special thanks also go to research librarian Nick Farris for his invaluable support. 258 REVIEW OF BANKING & FINANCIAL LAW VOL. 36 Table of Contents I. Introduction ........................................................................... 258 II. Private Fund Investor Due Diligence .................................. 265 III. Data & Trends ...................................................................... 275 A. SEC Form ADV Part II: 2007 to 2014 ........................ 275 B. Litigation Record: 1995 to 2015 .................................. 279 1. Legal Standards ............................................... 284 2. Core Cases ....................................................... 289 3. Impact of the Madoff Ponzi Scheme .............
    [Show full text]
  • JOINT REPLY MEMORANDUM of LAW in Support Re: (66 in 1:09-Cv
    Pacific West Health Medical Center Inc. Employees Retirement Trust et al ...ld Greenwich Group et al Doc. 130 Att. 1 APPENDIX A 1. Stephenson v. Citco Group Ltd., No. 09 Civ. 00716(RJH), 2010 WL 1244007 (S.D.N.Y. Apr. 1, 2010) 2. Meridian Horizon Fund, LP v. Tremont Group Holdings, Inc., No. 09 Civ. 3708(TPG), 2010 WL 1257567 (S.D.N.Y. Mar. 31, 2010) 3. In re Tremont Sec. Law, State Law & Ins. Litig., 08 Civ. 11117(TPG), 2010 WL 1257580 (S.D.N.Y. Mar. 30, 2010) 4. Barron v. Igolnikov, No. 09 Civ. 4471(TPG), 2010 WL 882890 (S.D.N.Y. Mar. 10, 2010) 5. SEC v. Cohmad Sec. Corp., No. 09 Civ. 5680(LLS), 2010 WL 363844 (S.D.N.Y. Feb. 2, 2010) 6. Backus v. Conn. Cmty. Bank, N.A., No. 3:09-CV-1256, 2009 WL 5184360 (D. Conn. Dec. 23, 2009) 7. Levinson v. PSCC Servs., Inc., No. 3:09-CV-00269(PCD), 2009 WL 5184363 (D. Conn. Dec. 23, 2009) 8. CRT v. Merkin, No. 601052/09 (N.Y. Sup. Ct. May 5, 2010) Dockets.Justia.com 1 Page 1 --- F.Supp.2d ----, 2010 WL 1244007 (S.D.N.Y.) (Cite as: 2010 WL 1244007 (S.D.N.Y.)) invested partnership's funds in Ponzi scheme, were Only the Westlaw citation is currently available. derivative of those of partnership for standing pur- poses; limited partner did not allege an injury to himself independent of the injury to partnership. United States District Court, S.D. New York. G.
    [Show full text]
  • Exhibit C - Tremont Complaint Pg 1 of 194
    12-01699-smb Doc 113-3 Filed 11/10/20 Entered 11/10/20 15:02:45 Exhibit C - Tremont Complaint Pg 1 of 194 EXHIBIT C 10-05310-brl12-01699-smb Doc Doc 1-11 113-3 Filed Filed 12/07/10 11/10/20 Entered Entered 12/07/10 11/10/20 21:05:33 15:02:45 Main Exhibit Document C - Tremont Complaint Pg 1 of 138 Pg 2 of 194 Baker & Hostetler LLP 45 Rockefeller Plaza New York, New York 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 David J. Sheehan Email: [email protected] Keith R. Murphy Email: [email protected] Marc Skapof Email: [email protected] Marc D. Powers Email: [email protected] Eric R. Fish 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 In re: SIPA LIQUIDATION BERNARD L. MADOFF INVESTMENT No. 08-01789 (BRL) SECURITIES LLC, (Substantively Consolidated) Debtor. In re: BERNARD L. MADOFF Debtor. IRVING H. PICARD, Trustee for the Liquidation Adv. Pro. No. ________ (BRL) of Bernard L. Madoff Investment Securities LLC, Plaintiff, 10-05310-brl12-01699-smb Doc Doc 1-11 113-3 Filed Filed 12/07/10 11/10/20 Entered Entered 12/07/10 11/10/20 21:05:33 15:02:45 Main Exhibit Document C - Tremont Complaint Pg 2 of 138 Pg 3 of 194 v. TREMONT GROUP HOLDINGS, INC.; TREMONT PARTNERS, INC.; TREMONT (BERMUDA) LIMITED; RYE SELECT BROAD MARKET FUND, L.P.; RYE SELECT BROAD MARKET PRIME FUND, L.P.; RYE SELECT BROAD MARKET PORTFOLIO LIMITED; RYE SELECT
    [Show full text]
  • UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT of NEW YORK ------X SECURITIES INVESTOR PROTECTION : CORPORATION, : Adv
    10-05354-smb Doc 200 Filed 03/31/20 Entered 03/31/20 12:29:44 Main Document Pg 1 of 33 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------ --------X SECURITIES INVESTOR PROTECTION : CORPORATION, : Adv. Pro. No. 08-01789 (SMB) : Plaintiff-Applicant, : SIPA Liquidation : ‒ against ‒ : (Substantively Consolidated) : BERNARD L. MADOFF INVESTMENT : SECURITIES LLC, : : Defendant. : --------------------------------------------------------X In re: : : BERNARD L. MADOFF, : : Debtor. : --------------------------------------------------------X IRVING PICARD, Trustee for the Liquidation : of Bernard L. Madoff Investment Securities : LLC, : : Plaintiff, : : ‒ against ‒ : Adv. Pro. No. 10-05354 (SMB) : ABN AMRO BANK N.A. : : Defendant. : --------------------------------------------------------X MEMORANDUM DECISION DENYING TRUSTEE’S MOTION FOR LEAVE TO FILE A SECOND AMENDED COMPLAINT A P P E A R A N C E S: BAKER & HOSTETLER LLP 45 Rockefeller Plaza New York, New York 10111 David J. Sheehan, Esq. Patrick T. Campbell, Esq. Camille C. Bent, Esq. Elizabeth McCurrach, Esq. 10-05354-smb Doc 200 Filed 03/31/20 Entered 03/31/20 12:29:44 Main Document Pg 2 of 33 Matthew Cowherd, Esq. Of Counsel Attorneys for Plaintiff REICHMAN JORGENSEN LLP 750 Third Avenue, Suite 2400 New York, New York 10017 Michael S. Feldberg, Esq. Of Counsel Attorneys for Defendant STUART M. BERNSTEIN United States Bankruptcy Judge: Plaintiff Irving H. Picard, as trustee (the “Trustee”) for the liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”) under the Securities Investor Protection Act, 15 U.S.C. §§ 78aaa, et seq. (“SIPA”), has moved (“Motion”)1 for leave to file his Proposed Second Amended Complaint (“PSAC”)2 seeking to recover subsequent transfers totaling $276,313,906.oo from ABN AMRO Bank N.V.
    [Show full text]
  • David B. Newman, Et Al. V. Family Management Corporation, Et Al. 08
    UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK DAVID B. NEWMAN and IRA FM/0 DAVID NEWMAN- PERSHING LLC as Custodian, on behalf of themselves and all 08 Civ. 11215 Others Similarly Situated, and Derivatively on behalf of FM LOW VOLATILITY FUND, L.P., JURY TRIAL DEMANDED Plaintiffs, V. c.r)(7) . ; FAMILY MANAGEMENT CORPORATION, -0 SEYMOUR W. ZISES, ANDREA L. TESSLER, ANDOVER ASSOCIATES LLC I, c ANDOVER ASSOCIATES MANAGEMENT cn CORP., BEACON ASSOCIATES LLC I, BEACON ASSOCIATES MANAGEMENT CORP., JOEL DANZIGER, HARRIS MARKHOFF, MAXAM ABSOLUTE RETURN FUND, LP, MAXAM CAPITAL MANAGEMENT LLC, MAXAM CAPITAL GP, LLC, MAXAM CAPITAL MANAGEMENT LIMITED, and SANDRA MANZKE, Defendants, and FM LOW VOLATILITY FUND, L.P., Nominal Defendant. FIRST AMENDED CLASS ACTION AND DERIVATIVE COMPLAINT Plaintiffs David B. Newman and IRA F/B/O David Newman, Pershing LLC as Custodian, of which David B. Newman is the owner ("Newman IRA") (together, "Plaintiffs"), on behalf of themselves and the Class (defined below), and on behalf of the Nominal Defendant (defined below), allege upon the investigation made by and through their counsel, complaints \543457 filed by the United States Government, the Securities and Exchange Commission (the “SEC”) and other entities, and reports and interviews published in the financial press, as follows: I. SUMMARY OF ACTION 1. This is both a derivative action brought by Plaintiffs, who are limited partners of FM Low Volatility Fund LP (the “Fund”), on behalf of the Fund, and a class action on behalf of all persons, other than Defendants (defined below), who invested in the Fund between April 8, 2008 through and including December 11, 2008 (the “Class Period”), to recover damages caused by Defendants’ violations of the federal securities laws and common law (the “Class”).
    [Show full text]
  • Recent Developments in Ponzi Scheme Litigation
    3 RECENT DEVELOPMENTS IN PONZI SCHEME LITIGATION Lawrence J. Zweifach Sophia N. Khan Gibson, Dunn & Crutcher LLP Mr. Zweifach is a partner of Gibson, Dunn & Crutcher LLP. Ms. Khan is an associate at Gibson, Dunn & Crutcher LLP. If you find this article helpful, you can learn more about the subject by going to www.pli.edu to view the on demand program or segment for which it was written. 99 I. INTRODUCTION Within a period of one and one-half years, from September 2008 to December 2009, authorities discovered four of the largest Ponzi schemes in U.S. history. Most notorious among them is Bernard Madoff’s Ponzi scheme of epic proportions, which in December 2008 was reported to have been conducted for more than 20 years and to have involved more than $65 billion in investor losses. Following the Madoff scandal in size and scale are the schemes of Tom Petters, the architect of a $3.7 billion, ten-year long fraud that came to light in September 2008; Robert Allen Stanford, whose scheme surfaced in February 2009 and is believed to have spanned ten years and involved $8 billion; and Scott Rothstein, who confessed in December 2009 to running a $1.2 billion Ponzi scheme. These Ponzi schemes have spawned major litigation in courts in the United States and abroad. Each case has led to multiple criminal prosecutions—not only of the four individuals who are ultimately credited with designing the fraudulent schemes, but also of their employees, associates and, in some cases, auditors, who are alleged to have been their co-conspirators in executing the fraud.
    [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]
  • Madoff Trustee Sues UBS for $2 Billion by Michael Rothfeld the Wall Street Journal November 24, 2010
    Madoff Trustee Sues UBS for $2 Billion By Michael Rothfeld The Wall Street Journal November 24, 2010 The trustee recovering money for victims of Bernard Madoff's Ponzi scheme is seeking $2 billion from UBS AG through a lawsuit that accuses the giant Swiss bank of actively participating in the fraud. In a lawsuit filed in federal bankruptcy court in New York, trustee Irving Picard alleged 23 counts of financial fraud and misconduct against UBS and related entities. Mr. Picard said the bank "lent an aura of legitimacy" to several international feeder funds, including Luxalpha SICAV, by serving as their sponsor, custodian and administrator. At the same time, it avoided legal responsibility for the funds' actions through undisclosed indemnity agreements, he said. The bank had indications of fraud, but it nonetheless made Mr. Madoff the subcustodian of the feeder funds, ceding authority to him to value them, said Mr. Picard, who is overseeing the bankruptcy of Bernard L. Madoff Investment Securities. "Madoff's scheme could not have been accomplished unless UBS had agreed not only to look the other way, but also to pretend that they were truly ensuring the existence of assets and trades when in fact they were not and never did," said Mr. Picard's counsel, David Sheehan. UBS didn't immediately respond to a request for comment. Mr. Madoff pleaded guilty to running a multi-billion dollar Ponzi scheme in March 2009. He is serving a 150-year sentence in federal prison in North Carolina. The lawsuit comes as Mr. Picard faces a legal deadline next month, two years from Mr.
    [Show full text]