Litigation and Securities Alert: Collapse of Bernard L. Madoff Investment Securities LLC

more+
less-

This is an update regarding the collapse of securities firm Bernard L. Madoff Investment Securities LLC (“BMIS”) and the associated fraud scheme to which its founder, Bernard Madoff, admitted last week.

Last Friday, December 12, 2008, the U.S. District Court for the Southern District of New York (“SDNY”), in a proceeding commenced by the U.S. Securities and Exchange Commission (SEC), appointed Lee S. Richards of the law firm of Richards Kibbe & Orbe LLP as receiver for BMIS.

On Monday, December 15, 2008, the Securities Investor Protection Corporation (SIPC), the securities-industry funded nonprofit membership organization for broker-dealers which maintains a special reserve fund authorized by Congress to restore funds to investors at failed brokerage firms, announced that it is liquidating BMIS (a SIPC member) under the Securities Investor Protection Act of 1970 (“SIPA”) and commenced a liquidation proceeding in the SDNY. The court determined that BMIS’s customers are in need of the protection afforded by SIPA and appointed Irving H. Picard as trustee for the liquidation of BMIS and the law firm of Baker & Hostetler LLP as counsel to Mr. Picard. The assets of BMIS are frozen at this time. The liquidation proceeding was transferred to the Bankruptcy Court and is now before Bankruptcy Judge James M. Peck.

Please see full alert for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mintz Levin | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×