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...
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Case Information

Case Title

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

Case Number



New York Southern

Nature of Suit

Bankruptcy Withdrawl


J. Paul Oetken

Date Filed

September 20, 2011

Law Firms

Government Agencies

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