Madoff Trustee Asks To Cut Loose Fund Investors

Law360, New York (October 19, 2010, 5:52 PM EDT) -- Investors in hedge funds that passed money along to Bernard L. Madoff Investment Securities LLC should not receive distributions from the convicted Ponzi schemer's liquidation proceedings, a lawyer for a litigation trustee in the Chapter 11 case argued in court on Tuesday.

David J. Sheehan of Baker Hostetler LLP told Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York that while the so-called feeder fund investors may have claims against their respective funds, they largely do not qualify, legally,...
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