Madoff Related Litigation

Several foreign banks
2010 - 2014

Our attorneys represent several foreign banks from Switzerland, Singapore, Israel and the Netherlands in litigation related to the Madoff Ponzi scheme in multiple actions pending in the Southern District of New York, Bankruptcy Court for the Southern District of New York, and the Bankruptcy Court of the British Virgin Islands. The Trustee of the Madoff Ponzi scheme and the liquidator of the Fairfield estate (the largest single investor in Madoff) are jointly seeking to recover more than US$200 million in payments made to these various banks.  The Trustee and the Liquidator allege that these payments were proceeds of the Madoff Ponzi scheme and should be returned to the estate for distribution to the victims.  The cases involve novel legal questions regarding the scope and meaning of the Securities Investor Protection Act, the jurisdiction of the bankruptcy court, the extent of the good faith defense for a bank that makes bona fide investments in securities, the scope of jurisdiction in a Chapter 15 Bankruptcy, and the enforceability of foreign-bank secrecy laws in the United States.

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