Wednesday, July 18, 2012

Madoff Mediation

Attorney General Kamala Harris of California and the liquidator of Bernard Madoff's defunct firm will mediate to pursue a settlement according to Manhattan U.S. Bankruptcy Judge Burton Lifland. Madoff trustee, Irving Picard, asked Judge Lifland to stop California's $270 million lawsuit against an alleged beneficiary of the Ponzi scheme, arguing that only the trustee can collect money for Madoff's victims. Harris contends her suit can proceed because she's using state police power to protect against consumer fraud. Interestingly, Picard did not protest when New York Attorney General Eric Schneiderman struck a $410 million settlement deal with Madoff feeder-fund operator Ezra Merkin. However, Picard sued Harris in January, alleging her lawsuit filed on behalf of Californians interferes with the collection of assets needed to help compensate Madoff victims. See story here -