Offshore Funds, Madoff, Innkeepers, Giordano’s: Bankruptcy

The trustee liquidating Bernard L. Madoff Investment Securities Inc. and the Securities Investor Protection Corp. each filed 38-page briefs yesterday opposing dismissal of the trustee’s $59 billion lawsuit against UniCredit SpA and subsidiary UniCredit Bank Austria AG. The 76 pages of briefs, not counting supporting papers, represent the trustee’s and SIPC’s attempts at preventing U.S. District Judge Jed Rakoff from dismissing the suit for the reasons he gave in late July when he threw out the largest part of a separate $9 billion suit against HSBC Holdings Plc. Read more on Bloomberg Businessweek [...]

Madoff Trustee to Dismiss Some Claims Against Maxam Capital Management

Irving Picard, the trustee liquidating Bernard L. Madoff’s money-management firm, said he will dismiss common-law claims against Maxam Capital Management LLC and its founder Sandra Manzke. Read more on Bloomberg [...]

Michael McNerney Gets Five Years in Prison for $1.25 Billion Mutual Benefits Ponzi Scheme

Michael J. McNerney — a founding partner of the Fort Lauderdale Brinkley, McNerney, Morgan, Solomon & Tatum law firm as well as a founding partner of the Mutual Benefits Corp.’s Ponzi scheme — was sentenced late last week to five years in prison. Read more in the New Times Blog [...]

Why The SEC Should Finally Be Scrapped

The SEC has been plagued for years by charges that it is an ineffective body. But the latest insider criticism levied at the watchdog should signal an end to its “loose rule” over the financial industry, some say. Read more on Wall Street & Technology [...]

SIPC Says Madoff Suit Involving Kohn Shouldn’t Be Dismissed

The Securities Investor Protection Corp. said that a lawsuit brought by the liquidator of Bernhard Madoff’s investment firm against Bank Medici AG founder Sonja Kohn and UniCredit SpA shouldn’t be dismissed.
Read San Francisco Chronicle report [...]

SEC Lawyer Blew Whistle Before

The Securities and Exchange Commission lawyer who has accused the regulator of improperly destroying thousands of sensitive documents is a proven whistleblower: He received an award of around $2.7 million for exposing possible fraud in a previous job. Read more in the Wall Street Journal [...]

Madoff trustee seeks to broaden $59 billion Kohn case

Hoping to bolster his biggest case, the trustee seeking money for Bernard Madoff’s victims has proposed adding new claims and 23 defendants to his $58.8 billion lawsuit against Bank Medici AG founder Sonja Kohn and Italy’s UniCredit SpA. Read more on Reuters [...]

Madoff Trustee Appeals Ruling Rejecting $9 Billion in Damages in HSBC Case

The liquidator of Bernard L. Madoff’s firm appealed a judge’s ruling on his lawsuit against HSBC Holdings Plc (HSBA) that threw out almost $9 billion in damages demanded from HSBC and feeder funds. U.S. District Judge Jed Rakoff in New York ruled July 28 that trustee Irving H. Picard has no right to sue on behalf of customers or the Madoff estate, using common-law claims against parties “who allegedly violated a duty to Madoff Securities’ customers by failing to detect Madoff’s fraud.” The trustee was free to pursue $2 billion in bankruptcy claims, Rakoff ruled. Read Bloomberg report [...]

HuffPost Review: Chasing Madoff

Bernard Madoff’s name is in the title of Chasing Madoff. But this is really a film about Harry Markopolos, for better or worse. Read more on Huffington Post [...]

Fugitive Moody’s Analyst Ordered to Pay $35 Million to S.E.C.

On Tuesday, a federal judge ordered Mr. Deep Shah to pay the government $34.6 million related to the Securities and Exchange Commission’s insider trading lawsuit against him. Read more in the NY Times [...]