Supreme Court Declines To Review Second Circuit Decision In Madoff Case Limiting Trustee’s Power To Avoid Securities-Related Payments As Fraudulent Transfers
On June 22, 2015, the Supreme Court summarily declined to review the unanimous decision of a panel of the U.S. Court of Appeals for the Second Circuit in the Madoff Securities liquidation proceeding, issued in December 2014, which significantly limited the scope of a trustee’s clawback remedies. The case is Picard v. Ida Fishman Revocable Trust (In re Bernard L. Madoff Inv. Secs. LLP), No. 12-2557, 2014 U.S. App. Lexis 23032 (2d Cir. Dec. 8, 2014), cert. denied, Nos. 14-1128 and 14-1129, 2015 U.S. LEXIS 4229 and 2015 U.S. LEXIS 4232 (U.S. June 22, 2015). Richard Levy, Jr., co-chair of Pryor Cashman’s Bankruptcy, Reorganization & Creditors’ Rights Group, argued the appeal in the Second Circuit on behalf of former customers of Madoff Securities, and was counsel of record for the customers in the Supreme Court proceeding. Mr. Levy has prepared a Legal Update discussing the case and the impact of the Supreme Court’s action. To read the update, please click here.
