Madoff Customer Claims Ruled Derivative Of Settled Fraudulent Transfer Claim

Mealey's (June 28, 2018, 1:18 PM EDT) -- NEW YORK — Customers of Bernard L. Madoff Investment Securities LLC (BLMIS) may not bring a federal securities law claim against the estate and related entities of one of Madoff’s investors because the claim is derivative of the BLMIS bankruptcy trustee’s fraudulent transfer claim against the investor and is, thus, subject to a permanent injunction barring BLMIS customers or creditors from bringing such a claim, a Second Circuit U.S. Court of Appeals panel ruled June 27 (A&G Goldman Partnership, et al. v. Irving H. Picard, et al., No. 17-512, 2nd Cir.)....