California’s Harris Seen as Doing Better Than Madoff Creditors

California Attorney General Kamala Harris may have a better chance of winning the right to pursue her lawsuit to recoup illegal profit from Bernard Madoff’s fraud than creditors who were overridden by a bankruptcy trustee, lawyers said. Irving Picard, the bankruptcy trustee liquidating Madoff’s assets to recover funds for the con man’s investors, won a court ruling in another case giving his lawsuit priority over one by Madoff creditors. Picard is now trying to block Harris’s $270 million state enforcement action against investment adviser Stanley Chais’s estate, saying that under U.S. bankruptcy law he alone can take money stolen from Madoff customers. More on Bloomberg here.

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