Madoff Investors Want Trustee's $44M Fee Bid Blocked

Law360, New York (May 26, 2011, 4:31 PM EDT) -- Some 800 Bernard L. Madoff Investment Securities LLC customers on Wednesday said a New York bankruptcy court should block the liquidation trustee's $43.9 million fee request because he is acting in violation of federal law governing the closure of failed investment companies.

The investors say Irving Picard and his firm, Baker Hostetler, are wrongly pursuing avoidance procedures against investors even though there is sufficient money available to repay investors' claims, a violation of the Securities Investor Protection Act.

The motion said that as of Monday, Picard...
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