Madoff trustee loses appeal over bank allegations
Nike Mercurial Vapor X nike Mercurial Vapor X and other banks he charged with aiding in the swindler fraud. Circuit Court of Appeals in New York said on Thursday trustee Irving Picard lacked standing to pursue a variety of claims with respect to former Madoff customers.
It also said that because Picard in the shoes of the previous Bernard L. Madoff Investment investments LLC, He could not pursue other claims with respect to the firm bankruptcy estate over a fraud that the firm itself orchestrated.
Thurs night 30 decision, Published by Chief Judge Dennis Jacobs, Is a win for JPMorgan, Which in fact had been Madoff main bank, Together with the expectations Britain HSBC Holdings Plc, Italy UniCredit SpA and swiss UBS AG.
Unless Picard easily appeals, It also limits how much he will have to distribute to victims of Madoff Ponzi scheme once the process of recovery is complete. That process began after Madoff Dec. 11, 2008 stop, And should last years more.
In order to his website, Picard has so far hauled $9.35 billion dollars, Slightly over fifty percent Nike Mercurial Vapor X of the $17.3 billion of customer essential he has said was lost.
Amanda-m Remus, A speaker for Picard, Said the trustee is reviewing it and is still pursuing more than $4 billion of separate claims against bank defendants in the federal bankruptcy court in Manhattan.
Picard is an opponent at the law firm Baker Hostetler.
Picard had argued that banking institutions ignored flags of fraud, Often to win more fees and commissions for services they presented to Madoff and his firm, And may pay their share to cover victims losses.
JPMorgan spokesperson Joseph Evangelisti had no immediate comment. HSBC spokesman Rob Sherman did not quickly respond to requests for comment.
UBS spokeswoman Karina Byrne said the bank is pleased with choosing one. Marco Schnabl, An accomplice at Skadden, Arps, State, Nike Mercurial Vapor X Meagher Flom symbolizing UniCredit, Said he is pleased with deciding.
Citing a legal doctrine commonly known pari delicto, Jacobs said Picard could not assert claims on the firm behalf to recoup for fraud caused by the firm itself.
He also said impact all civilian federal Securities Investor Protection Act, That will help protect customers of failed brokerages, Does not let Picard assert a variety of claims for the kids.
The 2nd Circuit also set aside Picard contention that giving him greater power would reduce the danger of for Madoff enablers and increase recoveries for victims.
Highly don’t buy, There are benefits to the course Picard wants to follow, Jacobs composed. Equity has the edge; It may fill certain gaps in a law, But Nike Mercurial Vapor X it ought not to be used to enlarge substantive rights and powers.
Picard has filed higher than 1,000 lawsuits against banks and other defendants to get better more than Nike Mercurial Vapor X $103 billion, A sum overpriced by triple damages on some claims Nike Mercurial Vapor X Nike Mercurial Vapor X.