Madoff Feeder Funds Seek Bankruptcy Suit Removal

Law360, New York (September 20, 2011, 8:33 PM EDT) -- Two alleged feeder funds of Bernard L. Madoff's Ponzi scheme asked a New York federal judge Monday to remove suits lodged by the trustee overseeing liquidation of Madoff's firm from bankruptcy court, saying the suits raise securities issues that belong in district court.

The Primeo Fund and the Herald Fund, affiliates of HSBC PLC unit HSBC Securities Services Luxembourg SA, argue that claims lodged by Irving H. Picard that they profited from Madoff's scam raise questions that require interpretations of the Securities Investor Protection Act —...
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