Madoff Trustee Seeks OK To Appeal Clawback Claims Ruling

The trustee for notorious Ponzi schemer Bernie Madoff on Thursday asked a New York federal judge to allow him to appeal a decision that could threaten his clawback suits against investors who profited via the scheme, saying it conflicted with Second Circuit precedent. Irving Picard claims that U.S. District Judge Jed S. Rakoff’s April decision — which allowed defendants to seek dismissal of his claims on the grounds he had failed to adequately allege they were motivated by a lack of good faith —– is contrary to rulings by the Second Circuit that place the burden of proof for such a defense on the defendants. He also argued that his appeal should be allowed to proceed now, rather than after any motions to dismiss by the defendants have been resolved, because an incorrect finding could prove a major disruption to the judicial process. More on Law360 here.