Judge Keeps $80M Refco Trustee Suit In Bankruptcy Court

Law360, New York (May 9, 2012, 8:31 PM EDT) -- A New York federal judge on Wednesday sent back to bankruptcy court an adversary suit brought by the trustee for failed brokerage Refco Inc. against executives accused of fraudulently receiving $80 million in funds in connection with a scheme to hide the bank's impending insolvency.

U.S. District Judge Jed S. Rakoff found that the U.S. Supreme Court's decision in Stern v. Marshall — which held that bankruptcy courts are constitutionally prohibited from issuing final decisions in certain cases, such as state law tortious interference claims —...
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