Judge Seeks To Put To Rest Bayou Clawback Suits

Law360, New York (November 5, 2010, 2:35 PM EDT) -- A federal judge has referred disputes over nearly $25 million distributed to investors in now-defunct Ponzi scheme operator Bayou Group LLC to a magistrate judge, hoping to encourage settlements in the bankruptcy estate's efforts to recover the funds for creditors.

Judge Paul G. Gardephe told lawyers during a conference in the U.S. District Court for the Southern District of New York that he hoped to see the last cases among a slew filed against investors by the Bayou estate resolved in the near future, but penciled...
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