The New York Law Journal by Noeleen G. Walder - NEWSBRIEFS - August 3, 2009
Citing what they called the "pathetic track record" of the court-appointed trustee in charge of liquidating Bernard L. Madoff's investment securities firm, three Pennsylvania residents who invested with Mr. Madoff urged a bankruptcy court to reject the request of Irving H. Picard and his counsel for more than $15 million in interim fees. In papers filed yesterday with the U.S. Southern District Bankruptcy Court, Diane and Roger Peskin and Maureen Ebel, who claim the support of more than 100 customers of Bernard L. Madoff Investment Securities LLC, accused Mr. Picard and his legal team at Baker & Hostetler, of causing "needless devastation" to Mr. Madoff's customers by "ignoring" the mandate of the Securities Investor Protection Corporation (SIPC) to pay claims promptly based upon their "statutory balances." "Of the more than 15,400 Customer Claims in this case, the Trustee has allowed a mere 747 claims in eight months," the objection to the fee applications states. The papers also accuse Mr. Picard of disregarding the law by failing to pay "SIPC insurance to anyone who does not have a net investment over the life of his investment with Madoff." Mr. Picard has come under fire in recent months for evaluating claims by subtracting the amount withdrawn from investors' total deposits with Mr. Madoff rather than using the value of their most recent account statements (NYLJ, June 11). In a mid-May briefing for reporters, Mr. Picard and Stephen Harbeck, president of SIPC, insisted that the maximum $500,000 the agency advances to customers of failed brokerage funds is not an insurance policy. A hearing on the fee applications is scheduled for Thursday. — Noeleen G. Walder
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4 comments:
Picard is laughing all the way to the bank.
first they got robbed by Madoff
then they got robbed by the trustee.
Who was a better thief?
this WHOLE thing is a typical mob scam
Turn on the light and see all the roaches,mistake,lawyers.
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