Stern Wrests $11M Arbco Clawback From Bankruptcy Court

Law360, New York (July 17, 2012, 3:10 PM EDT) -- A bankruptcy court cannot resolve an $11 million clawback suit by the trustee for Ponzi-scheming investment firm Arbco Capital Management LLP, a New York federal judge ruled Thursday, citing the U.S. Supreme Court's landmark decision in Stern v. Marshall.

U.S. District Judge J. Paul Oetken said a bankruptcy court could hear but not enter final judgment on claims by Arbco Chapter 7 Trustee Richard O'Connell against Penson Financial Services Inc., which cleared and settled Arbco's trades before the investment firm was forced into bankruptcy by angry...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

Richard O'Connell v. Penson Financial Services, Inc.


Case Number

1:11-cv-06586

Court

New York Southern

Nature of Suit

Bankruptcy Withdrawl

Judge

J. Paul Oetken

Date Filed

September 20, 2011

Law Firms

Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.