Trustees Group Backs Picard In 2nd Circ. Clawbacks Appeal

Law360, New York (February 18, 2014, 6:19 PM EST) -- The National Association of Bankruptcy Trustees on Friday told the Second Circuit it should allow Irving Picard, trustee for Bernie Madoff’s investment firm, to pursue a slew of clawback suits against Madoff’s Ponzi scheme customers. 

In amicus brief, the nonprofit professional association said the customers shouldn’t be covered by the safe-harbor policy of Section 546(e) of the U.S. Bankruptcy Code — which protects transfers made by a debtor in relation to securities trading — because Bernard Madoff Investment Securities LLC never actually had securities underlying its...
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