Asset Search News Roundup: September 4, 2009

Posted on September 4, 2009 by Fred Abrams

I discussed "clawback" in my July 18, 2009 "Asset Search News Roundup" as well as in "Clawback Caused By A Ponzi Scheme".  These articles explained that assets may be recovered by clawback which can force an investor to return presumptively fraudulent profits, as mentioned by In re: Bayou Group LLC, et. al., 396 B.R. 810 (Bkrtcy S.D.N.Y. 2008).

 

The September 1, 2009 article "Madoff Liquidator May ‘Claw Back’ Charities’ Profits" similarly talks about clawback.  It explained that SIPC trustee Irving Picard may file a new round of clawback claims to recover assets dissipated during Bernard Madoff's Ponzi scheme.  If filed as adversary proceeding complaints in bankruptcy court, trustee Picard's new clawback claims would probably be based on:

  1. 11 U.S.C. §542 (Turnover of property)
  2. 11 U.S.C. §544 (Trustee as lien creditor)
  3. 11 U.S.C. §547 (Preferences)
  4. 11 U.S.C. §548  (Fraudulent transfers and obligations)
  5. 11 U.S.C. §550 (Liability of transferee of avoided transfer)
  6. 11 U.S.C. §551 (Automatic preservation of avoided transfer)
  7. N.Y. Debtor Creditor Law §§270 et. seq.

  

Trustee Picard's effort to recover assets through clawback claims in the Madoff case, has already included his filing of these two adversary proceeding complaints:

  

(Click On Each Image To View The Clawback Complaints)

 

 

 

 Copyright 2009 Fred L. Abrams

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