Madoff trustee to high court: Ruling blocking $4B in payouts
NEW YORK (AP) -- The trustee finding money for victims of Bernard Madoff's epic fraud is asking the U.S. Supreme Court to review a court ruling that he says may prevent the recovery of nearly $4 billion.
Trustee Irving Picard asked the high court Tuesday to look at the December ruling by the 2nd U.S. Circuit Court of Appeals in Manhattan. He says the appeals decision blocked the trustee from recovering and distributing nearly $2 billion and calls into question an additional $2 billion in potential recoveries and distributions.
A petition by Picard calls the repercussions of the 2nd Circuit decision profound. The 2nd Circuit ruled after some Madoff customers, who received more in payouts from Madoff than their original investment, claimed they were protected under bankruptcy laws.