Investors File Ch. 7 Petition Against Madoff

Law360, New York (April 13, 2009, 12:00 AM EDT) -- Customers of Bernard L. Madoff's defunct broker-dealer on Monday filed an involuntary bankruptcy petition against Madoff personally, having won a bid to try to force the disgraced financier into Chapter 7 despite opposition from parties including the U.S. Securities and Exchange Commission.

The point of lodging the involuntary petition, which was filed in the U.S. Bankruptcy Court for the Southern District of New York by five investors with Bernard L. Madoff Investment Securities LLC, is to make sure that all of Madoff's assets go to creditors,...
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