Madoff Trustee's Cash In/Cash Out Method Gets OK

Law360, New York (March 1, 2010, 5:22 PM EST) -- A federal judge has sided with the liquidation trustee for Bernard Madoff’s defunct firm, agreeing that each investor claim against it should be determined by crediting the amount of cash deposited minus any amounts already withdrawn, rather than on the basis of customers’ last account statements.

Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York ruled Monday that the wronged Madoff investors should not be treated like real securities claimants.

“Because 'securities positions' are in fact nonexistent, the trustee...
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