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Madoff Trustee Heads Back to Court

Monday, October 03, 2011

WNYC

The court-appointed trustee working towards recovering funds for the people who invested money with Bernard Madoff is expected back in court Monday.

investor Harold Hein, who's being sued by Irving Picard for profits he received from the funds he'd invested with Madoff, is expected to ask that his case be moved out of bankruptcy court today. It's called a motion to withdrawal. But, trustee Irving Picard wants the case to stay where it is.

In bankruptcy court, a judge can show deference to a bankruptcy trustee, but in federal district court other considerations and statutes may take precedence.

Many large investors being sued by Picard are also seeking to move their cases out of bankruptcy court.

Last week, a judge severely limited how much money Picard can clawback from large Madoff investors, like the owners of the New York Mets.  But Picard said these large investors made hundreds of millions of dollars from Madoff's fraud. 

Picard hopes to recover those funds, and redistribute the money to smaller Madoff investors, many who lost everything.  

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