Madoff Trustee Blocked From Foreign Clawbacks
On Monday, November 21, U.S. Bankruptcy Judge Stuart Bernstein ruled that the Trustee for the bankrupt Bernard L. Madoff Investment Securities may not "claw back" funds paid out from so-called offshore feeder funds to foreign banks and other service providers.
Mr. Velie led the S&W Team that represented the defendants in the lawsuits. He called the ruling a "significant development," and said, “foreign banks and service providers were dragged into the bankruptcy in the U.S. and claims were made against them for vast sums. We are hopeful this is the end of the matter.”