Partner Richard Levy Speaks to Wall Street Journal About Recovery Funds in Madoff CaseThe Wall Street Journal
Partner Richard Levy, Jr., Co-Chair of Pryor Cashman’s Bankruptcy Group, was interviewed by The Wall Street Journal on September 29, 2011 for its article entitled “Ruling Curtails Recovery of Funds in Madoff Fraud.”
The article discusses, U.S. District Court Judge, Jed Rakoff’s decision to shorten the period during which court-appointed trustee, Irving Picard, can attempt to recover billions of dollars of investor funds for victims of Bernard Madoff.
Mr. Picard has sued people and institutions who invested and, often unwittingly, allegedly profited off Mr. Madoff's Ponzi scheme in order to collect money he can use to repay other investors who lost some or all of the principal they sent to his firm.
According to the article, the recovery period was shortened from six years prior to the bankruptcy of Mr. Madoff’s firm – the limit under New York State law – to a two-year window allowed under federal law. That means the money Mr. Picard could ultimately recover would be significantly smaller, and the money individual investors receive smaller still.
When asked about the setbacks this could potentially cause victims of the Ponzi scheme, Levy, who represents several Madoff investors, told the publication “if this opinion stands, it substantially reduces the magnitude of clawback recovery the trustee may be able to realize.”
To read the article in its entirety, please click here.