Judge blocks Madoff bankruptcy trustee’s suit against banks

July 30, 2011 09:06


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


A federal judge ruled that the trustee charged with recovering assets lost in Bernard Madoff’s Ponzi scheme does not have standing to sue banks and other institutions on behalf of victims for failing to detect the fraud.

In a ruling issued Thursday, United States District Judge Jed Rakoff said that the bankruptcy trustee, Irving Picard, cannot make claims against third parties for money that was not received from Madoff.

In addition to trying to recoup funds from Madoff investors who had received payouts in excess of their deposits, Picard has sued banks and other entities that helped to funnel money to Madoff’s operations. Picard has argued that such banks violated their duties to investors by ignoring evidence that Madoff was engaged in a fraud.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Breaking news
September 26, 2018
Danon in response to Rouhani: Iranian actions spread terror