Introduction
In the latest chapter of more than a decade of litigation involving efforts to recover fictitious profits paid to certain customers of Bernard Madoff s defunct brokerage firm as part of the largest Ponzi scheme in history, the U.S. Court of Appeals for the Second Circuit held in
In re Bernard L. Madoff Investment Securities LLC, 976 F.3d 184 (2d Cir. 2020) (
Madoff ), that the customers did not have a defense to avoidance and recovery because they received the payments for value. The Second Circuit also ruled that the trustee overseeing the brokerage firm s liquidation properly determined the amount subject to recovery despite calculating the defendants liability by netting the amounts they received against what they invested since the firm s inception.
Second Circuit: Madoff Ponzi Scheme Customers Did Not Receive Fictitious Profit Payments mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.
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In the latest chapter of more than a decade of litigation involving efforts to recover fictitious profits paid to certain customers of Bernard Madoff s defunct brokerage firm as part of the largest Ponzi scheme in history, the U.S. Court of Appeals for the Second Circuit held in
In re Bernard L. Madoff Investment Securities LLC, 976 F.3d 184 (2d Cir. 2020) (
Madoff ), that the customers did not have a defense to avoidance and recovery because they received the payments for value. The Second Circuit also ruled that the trustee overseeing the brokerage firm s liquidation properly determined the amount subject to recovery despite calculating the defendants liability by netting the amounts they received against what they invested since the firm s inception.