Judge Blocks Madoff Involuntary Bankruptcy

Judge Blocks Madoff Involuntary Bankruptcy - 4/20/2009

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

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Judge Blocks Madoff Involuntary Bankruptcy
Evan Weinberger

Securities Law 360. April 20, 2009
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EXCERPT: The federal judge overseeing criminal proceedings against Bernard L. Madoff signed a restraining order Monday, blocking an attempt by investors in the fraudster's firm to push him into involuntary bankruptcy, although questions remain about who will be in charge of the liquidation of his assets. Judge Denny Chin of the U.S. District Court for the Southern District of New York's order prevents Madoff and his wife, Ruth, from selling any of their property subject to a possible confiscation or liquidation by the government. The order extends to what prosecutors believe is up to $100 million in real estate and other assets, including a luxury Manhattan apartment; homes in the south of France, Florida and Montauk, N.Y.; and a yacht called Bull docked in the Cayman Islands. Representatives of the U.S. Attorney for the Southern District of New York were given an exemption under the order to confiscate any property necessary to cover damages in the case. The judge presiding over Madoff's bankruptcy proceedings threw an additional wrinkle into the process Monday. Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York agreed to appoint an interim trustee to liquidate Madoff's personal assets. Jonathan L. Landers, an attorney at Millberg LLP representing the investors attempting to force Madoff into bankruptcy, said that Judge Chin's ruling would in the end have little effect on their push. "By the terms, it only affects Madoff and his wife," he said. Yusil Scribner, a spokeswoman for U.S. Attorney Lev Dassin, declined to comment on the situation. Landers noted that a representative of Dassin's office made no mention to Judge Lifland of the proceedings before Judge Chin, a move Landers said was highly suspect.

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