The Second Circuit holds that the presumption against extraterritoriality and international comity do not bar recovery of purely foreign transfers.

Key Points:

..The Second Circuit focused on the initial transfer from Madoff to foreign funds to determine whether subsequent transfers from the foreign funds to other foreign entities could be recovered under Section 550(a) of the Bankruptcy Code.

..The Second Circuit ruled that since the initial transfers were from New York-based Madoff Securities, the presumption against extraterritoriality and the principles of international comity did not bar the Madoff trustee’s attempts to recover these foreign subsequent transfers.