February 2nd Hearing on Net Equity

There was a meeting earlier today in Judge Lifland’s Courtroom between the Judge and both sides of the net equity argument; i.e., The Trustee/SIPC/SEC and several of the law firms that have briefed the net equity issue to decide upon a logical, cohesive presentation for February 2.

This is what we have been told:

The hearing will begin promptly at 10 a.m. in Judge Lifland’s
courtroom of the Customs House (This is located at 1 Bowling Green in downtown
Manhattan) the building where the creditors’ hearing was held last year.

The Trustee, as the petitioner, will address the court, followed by the lawyers for the investors. At the direction of the Judge, the lawyers collectively agreed upon who will present the Overview and Main Argument, and which law firm will argue additional issues. The Court has suggested 15 minutes per speaker – there will be some modification based upon subject matter.

The Courtroom is not large, and access will be extremely limited. Based on the request for media access and telephone calls received from investors, the Judge understands that there may be as many as 200 investors at the Hearing, and has instructed the Clerk to plan accordingly, and to arrange for live video and audio feed into overflow rooms. The Court is also trying to arrange for live call in.

Please note that these arguments are solely on the “net equity” issue, not the definition of customer, and not clawback.

Finally, It is important to note that there will be “lots of marshals” and extra court security personnel.

As we get additional information, we will keep you posted.

SourcedFrom Sourced from: Madoff Help News & Assistance

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