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Judge Says Madoff Trustee Can Proceed With Clawback Lawsuits

A bankruptcy judge said the trustee recovering money for victims of Bernard Madoff’s Ponzi scheme can move forward with his bid to claw back hundreds of millions of dollars in so-called fictitious profits from Mr. Madoff’s customers. Judge Stuart M. Bernstein of the U.S. Bankruptcy Court in New York said trustee Irving Picard can proceed with 233 lawsuits against investors who benefited from Mr. Madoff’s Ponzi scheme. The hallmark of all Ponzi schemes is the use of ‘the investments of new and existing customers to fund withdrawals of principal and supposed profit made by other customers,’ and Madoff’s activities fit the definition,” Judge Bernstein wrote on Tuesday in a 72-page decision. More in the Wall Street Journal here.

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