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| -Lurid Crime Tales- |
| Madoff Clawback - The Gift That Keeps On Giving |
| 2009-04-23 |
| The latest chapter in the complex and sordid saga of Bernard Madoff began recently as the bankruptcy trustee in the case took steps aimed at recovering over $400 million withdrawn by investors prior to the scheme becoming public. That action is called a clawback, and, if successful, could result in the investors being forced to return the money to the trustee who would eventually distribute it among all those who were cheated by Madoff. The action -- filing suits to recover a total of $405 million -- was taken by Irving Picard, acting as trustee for Madoff's firm. "It seems likely those are the first of many suits that will follow," observed Allan R. Lipman, an attorney who practices in both New York and Florida and who has written widely about issues confronting those with residences in both of those states. A published list of Madoff investors reveals a concentration in Palm Beach, Broward and Dade Counties in Florida and in Manhattan, Long Island and Westchester in New York State. Lipman predicts that many such investors with dual residences may be faced with similar clawback efforts. He believes they will be better able to resist those efforts if they can claim domicile in Florida rather than New York. Why? Because of different provisions governing Florida law, including statute of limitations and homestead rights, some Florida domiciliaries may be better able to defend their positions and retain some of the money, Lipman explains. Madoff sometimes refused to accept investments of less than $1 million, according to Lipman, and investors would pool their funds to meet his minimum requirements with only one of them dealing directly with Madoff. A successful clawback of that single investor may in turn result in attempted clawbacks by that investor from the other investors some of whom may have dual residences, Lipman believes, resulting in litigation that could last years. |
| Posted by:Anonymoose |
| #1 "resulting in litigation that could last years" The lawyers will always win.... |
| Posted by: Barbara Skolaut 2009-04-23 13:54 |