It is the trustee who is perverting investor protection law by suing thousands of innocent investors, Ron Stein, president of the group, said in an e-mailed statement. “It is absurd that the trustee is complaining about the targets of his lawsuits exercising their right to defend themselves,” he said. “And it should be noted that despite his ‘three years of hard work,’ he has barely begun to return lost money to these innocent investors — not exactly a swift return of funds that investor protection laws clearly require.” Read Bloomberg Businessweek report here.
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The liquidator of Bernard Madoff’s firm said people and companies he has sued in 247 actions are “eviscerating” the bankruptcy court and “perverting” the law by rushing to find new judges for their cases. They seek an “escape hatch” from bankruptcy court, which Congress intended to handle such cases as clawbacks of money withdrawn from a Ponzi scheme, the trustee said yesterday. Read Bloomberg Businessweek report here. Rep. Scott Garrett, R-N.J., chairman of the House Financial Services Capital Markets Subcommittee, told Securities and Exchange Commission Chairman Mary Schapiro in a letter on Monday to wait on final action in reconsidering the SEC’s position on “net equity” in the Bernie Madoff case. Garrett wants to hold off until after the Government Accountability Office publishes its report evaluating the actions of the Securities Investor Protection Corp. and its trustee. Read AdvisorOne article here. A top House Republican is urging the Securities and Exchange Commission to wait for a congressional watchdog report before reconsidering its position on the method to calculate claims for victims of Bernard Madoff’s Ponzi scheme. Rep. Scott Garrett (R., N.J.) said that before reconsidering the issue, the SEC ought to wait until the Government Accountability Office completes a review of the Securities Investor Protection Corp.—a compensation body overseen by the SEC—and the actions of Irving Picard, the trustee for the liquidation of the Madoff firm. Read more in the Wall Street Journal here. “As we have asserted for some time, SIPC and the Trustee have looked to reduce payouts in order to protect the SIPC fund,” said Ron Stein, president of the Network for Investor Action and Protection. “Protecting the fund over investors clearly defies congressional intent when SIPA was enacted. Mr. Garrett’s letter correctly indicates that protecting SIPC is not a standard allowed in law, and the entire decision must be fully reconsidered free of conflicts of interest. We hope the General Accounting Office will look at the conflict of interest issue to determine if the Trustee is capable of fulfilling his responsibilities responsibly and objectively.” Read more in the NY Daily News here. A group of Bernard Madoff’s investors got permission from the judge handling the Madoff trustee’s $19 billion lawsuit against JPMorgan Chase & Co. (JPM) to file papers arguing that big banks have duty to detect so- called red flags and stop frauds, according to a court filing today. Read more on Bloomberg here. A group of Bernard Madoff’s investors got permission from the judge handling the Madoff trustee’s $19 billion lawsuit against JPMorgan Chase & Co. (JPM) to file papers arguing that big banks have duty to detect so- called red flags and stop frauds, according to a court filing today. Click here for Bloomberg report. Many investors burned by Bernard Madoff’s Ponzi scheme denounced a federal appeals court ruling Tuesday that said they can’t recover billions of dollars they say they’re owed. Read USA Today report here. Appeals Court Finds Trustee Is Right to Pay Only ‘Net Losers’; ‘the Final Word on This Issue’?. Read Wall Street Journal article here. Dear Friend: As you may know, the Second Circuit Court of Appeals recently released its ruling on the Net Equity issue: the net investment method of calculating net equity, as advocated by the Trustee, is “legally sound.” NIAP strongly disagrees with this ruling, but we were prepared for it. Immediately after the ruling, we released a statement that was included in articles by The Wall Street Journal, CNBC, CNN Money, Bloomberg, and Fox Business and USA Today. |
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Contact us by phone at (631) 425-0770, fax at (631) 421-5701 or by email at admin@investoraction.org
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