Madoff Relative Loses Standing Defense To Clawback Suit

Law360, New York (November 14, 2012, 8:49 PM EST) -- A New York federal judge ruled on Tuesday that Bernard L. Madoff's brother-in-law cannot use a standing argument in his bid to toss a clawback suit launched by the trustee liquidating Madoff’s investment firm, saying a bankruptcy court can decide whether the trustee has standing.

U.S. District Judge Jed Rakoff said that, while the constitutional standing of trustee Irving Picard is an important threshold for avoidance and recovery claims, the case against Madoff's brother-in-law Robert Roman does not present a sufficiently significant constitutional problem that would...
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