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Madoff trustee largely prevails in 233 lawsuits

A federal judge on Tuesday ruled largely in favor of the trustee seeking millions of dollars for Bernard Madoff’s victims in 233 lawsuits that sought to recoup alleged fictitious profits generated by the Ponzi schemer’s firm. In a 72-page decision, U.S. Bankruptcy Judge Stuart Bernstein in Manhattan said the trustee Irving Picard could try to claw back money that former customers he calls “net winners” withdrew from Bernard L. Madoff Investment Securities LLC in the two years prior to that firm’s December 2008 bankruptcy. Bernstein rejected the argument that clawbacks should be limited because only a few Madoff employees knew of the fraud. More on Reuters [...]

Elizabeth Warren Calls S.E.C. Chief’s Tenure ‘Disappointing’

Senator Elizabeth Warren, the Massachusetts Democrat who has taken on Wall Street banks and the issue of income inequality, is now going after Mary Jo White, the chairwoman of the Securities and Exchange Commission. In a 13-page letter to Ms. White on Tuesday, Ms. Warren called her two-year stewardship of the S.E.C. “extremely disappointing” and not in keeping with the kind of leadership that Ms. White had promised to deliver during her Senate confirmation hearing. The senator said Ms. White had been slow to promulgate rules with regards to chief executive pay and failed to require companies settling enforcement actions to admit to wrongdoing. Ms. Warren also took issue with Ms. White having to recuse herself from too many matters her husband’s law firm has worked on and being too deferential when it came to giving Wall Street investment firms that had pleaded guilty to violating securities laws. More in the New York Times [...]

Madoff trustee to recoup $35.4 mln from Merkin funds

The trustee seeking money for Bernard Madoff’s victims will receive $35.4 million in a settlement with two funds once run by Wall Street hedge fund manager J. Ezra Merkin. According to settlement papers filed late Friday with the U.S. bankruptcy court in Manhattan, the payment will be made by the Ariel Fund Ltd and Gabriel Capital LP feeder funds, through their receiver Bart Schwartz. In exchange, the trustee Irving Picard will deem valid about $367.9 million of the funds’ claims against the former Bernard L. Madoff Investment Securities LLC. Ariel and Gabriel Capital will be entitled to $179.5 million of “catch-up” distributions. More on Reuters [...]

Thousands more Madoff victims may get payouts

Roughly 11,000 additional victims of Bernard Madoff’s Ponzi scheme may recover some of their losses, and the number could double as an official overseeing a $4.05 billion compensation fund set up by the U.S. government reviews more claims. In an update this week, the Madoff Victim Fund’s special master, Richard Breeden, said he would recommend that the U.S. Department of Justice approve payments on the 11,000 claims, comprising about $1.3 billion of losses, once all have proper signatures. It is likely the number of “approved” claims will at least double, Breeden said. More on Reuters [...]