Second Circuit - Securities Investors Protection Act: In re: Bernard L. Madoff Investment Securities LLC

Daily Record Staff//October 27, 2022//

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United States Court of Appeals for the Second Circuit

Securities Investors Protection Act

Recoverable property – Transfer prior to bankruptcy

In re: Bernard L. Madoff Investment Securities LLC

21-872

Judges Pooler, Wesley, and Menashi

Background: The defendants appealed from the grant of summary judgment to the plaintiff. The district court had granted a recovery of $2,925,000 that was transferred from Bernard L. Madoff Investment Securities to the defendants in the two years prior to BLMIS’s filing for bankruptcy.

Ruling: The Second Circuit affirmed. The court held that the sums at issue were made recoverable property under the Securities Investors Protection Act. As there is no dispute of material fact that BLMIS transferred the assets of his business to the defendants, summary judgment was proper.

Lance Gotthoffer, of Chaitman LLP, for the defendants-appellants; Amy E. Vanderwall, of Baker & Hostetler, and Nathanael Kelly, of the Securities Investor Protection Corporation, for the plaintiffs-appellees.