Madoff's Brother Gets Court Permission to Pay Living Expenses, Legal Fees

Madoff's Brother Gets Court Permission to Pay Living Expenses, Legal Fees - 4-6-2009 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright © 2001
Stanford Law School

2009 News and Press Releases

SEARCH

News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

Madoff's Brother Gets Court Permission to Pay Living Expenses, Legal Fees
Vesselin Mitev

Law.com. April 6, 2009
_________________________________________________________________________

EXCERPT: A Long Island, N.Y., judge has thawed a freeze of Peter B. Madoff's assets enough for him to pay household bills and the attorneys defending him from accusations of complicity with the massive Ponzi scheme orchestrated by his brother, Bernard L. Madoff. Supreme Court Justice Stephen A. Bucaria on Friday accepted a stipulation modifying the temporary freeze on the assets he imposed last week on Peter Madoff, of Old Westbury, N.Y. The agreement will allow him to spend $10,000 a month for housing, food, transportation and other "necessary" living expenses. In addition, Madoff can tap his assets to pay "legitimate, necessary and reasonable expenses and fees" to attorneys representing him in the ongoing legal fallout from his brother's Ponzi scheme. An amount was not specified. Peter Madoff is being sued by Andrew Samuels, a Brooklyn Law School student who claims his $500,000 trust fund was drained to pay "fictitious returns" to Bernard Madoff's investors. Peter Madoff, the senior managing director and chief compliance officer for his brother's investment firm, served as sole trustee of the fund for Samuels and his sister from 2003 to 2008. According to the complaint in Samuels v. Madoff, 09-5534, Peter Madoff had "full knowledge that it was a fraudulent Ponzi-scheme and nothing more than an unprecedented fraud." His attorneys have denied any wrongdoing. Lawyers for Samuels, who had requested the asset freeze, negotiated a stipulation to modify the freeze with Madoff's attorneys before Friday's proceeding. The stipulation "provides some security for a potential recovery and an ongoing ability for Madoff and his family to function in society," John Spellman, of Spellman Rice Schure Gibbons McDonough & Polizzi, one of his attorneys, told the court.

Back to News page | Back to Archived News 2009 page | Back to Top

�