Investors take Madoff to bankruptcy court
Bankruptcy
A small group of investors took Bernard Madoff to bankruptcy court on Monday, saying the disgraced financier bilked them out of nearly $64 million.
A Manhattan judge cleared the way for the newly filed Chapter 7 petition last week by granting a request from the same investors to lift a temporary order barring bankruptcy for Madoff. They had argued that a bankruptcy case was needed to protect their rights amid an ongoing scramble to seize his assets.
Madoff, 70, pleaded guilty last month to federal charges his secretive investment advisory service actually was a multibillion Ponzi scheme in which he paid longtime clients with money from new ones. He is jailed, awaiting a June sentencing for charges that carry a sentence of up to 150 years in prison.
Federal authorities already have begun forcing Madoff to forfeit property they allege was paid for by his fraud. In addition, a court-appointed trustee is liquidating assets from his securities firm to help play claims from thousands of burned investors.
The investors who sought bankruptcy believe it was the best way to make sure "all the property available would go to the victims," their lawyer, Jonathan Landers, said Monday.
They include a general partnership in Florida that claims it lost $30.2 million and another Madoff client who says he lost about $29 million in personal and charitable trust accounts. The claims are based on amounts listed in the last statements they received from Madoff — documents investigators say were fictitious.
Related listings
-
Vick to make first court appearance in bankruptcy
Bankruptcy 04/02/2009A judge wants to know more about suspended NFL star Michael Vick's bankruptcy plan, which is based on his goal of resuming his football career when he gets out of jail. Vick is scheduled to make his first personal appearance in a Virginia bankruptcy ...
-
Star Tribune seeks to abandon union's contract
Bankruptcy 03/12/2009The Star Tribune of Minneapolis returns to bankruptcy court Thursday, a day after seeking permission to void one of its labor contracts to further cut costs. Lawyers for the newspaper, which filed for Chapter 11 bankruptcy protection in January, told...
-
Spansion Files for Bankruptcy Protection in the U.S.
Bankruptcy 03/02/2009Spansion Inc., the U.S. maker of memory chips for mobile phones, filed for bankruptcy protection to restructure its debt after failing to make an interest payment on $266 million of bonds. The company listed debt of $2.4 billion and assets of $3.8 bi...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.