'Cash In/Cash Out' Pooh-Poohed In Madoff Ch. 11 Case

Law360, New York (February 2, 2010, 6:21 PM EST) -- Financial statements issued by Bernard L. Madoff Investment Securities LLC were bogus, attorneys for jilted investors told a bankruptcy judge Tuesday, but not so bogus they shouldn't be used to assess their clients' liquidation claims.

Their arguments, in the U.S. Bankruptcy Court for the Southern District of New York, were countered by the defunct firm's liquidation trustee and attorneys for two federal agencies, who characterized the Madoff-issued documents as "totally fictitious."

The sides are fighting over the “net equity” question, an issue that some estimate has...
To view the full article, register now.