Monday, February 25, 2019

Court Green-Lights Madoff Recovery Lawsuits

The trustee in the Bernie Madoff case isn't playing around in his recovery for Madoff's victims.  CNBC reported:

A federal appeals court said the trustee liquidating Bernard Madoff’s firm may pursue dozens of lawsuits to recoup funds from Koch Industries Inc, controlled by billionaire brothers Charles and David Koch, and other defendants, including major banks....

It gives the trustee Irving Picard a chance to add hundreds of millions of dollars to the $13.36 billion he has recouped for former customers of Bernard L. Madoff Investment Securities LLC.

The trustee has estimated that the customers lost $17.5 billion in Madoff’s fraud, which was uncovered in December 2008.... Rest of article.


Hermit King said...

Crazy thing is that a lot of "investments" are on a razor thin border of becoming cons. Just a few words on paper decides what is and isn't illegal.

I've got a great real estate investment plan that will make you rich on other people's money if you come to my free seminar at the Ramada.

Anonymous said...

The shady late night RE promotions aren't anything like the Ponzi schemes that Adams was running. Ponzi schemes have a unique signature that separates them from other types of fraud.

Anonymous said...

Lamar Adams was FAR more destructive than Bernie Madoff ever was, at least to the residents of the great state of MS.

Anonymous said...

If this was meant to show a parallel with the Lamar Adams Ponzi scheme, is there any information indicating that any of Adams' "investors" or other beneficiaries transferred anything they received from Adams' scheme out of the country? If there were no transfers out of the country, this doesn't seem to have any relevance to the Adams case. Even if there were transfers out of the country, this ruling wouldn't be binding on courts in the 5th or the 5th itself, but if there is no existing 5th circuit case law that conflicts with this ruling, it would likely be at least considered persuasive by those judges.

In any event, based on what little case law I've bothered to read, those who received anything from Adams and which remained in the US, be it "profit," commission, a gift, etc., are fighting a long, hard uphill battle they are likely to lose if they try to hang on to it.

Anonymous said...

It is pretty obvious that Ms Mills will have great latitude in her pursuit of assets to make victims whole. That includes brokers, feeders, lawyers, accountants, banks. Anyone who recommended or touched these transactions in any way will be in her sights. And rightfully so. Especially professionals firms with E&O and Malpractice insurance.

I was told that several banks quietly asked Adams to take his business elsewhere when they didn't like the pattern of deposits and withdrawals. When all the money coming in and out is to and from investors, and none of the transactions involve actual purchases or trade of goods or securities, then a 2nd year junior branch vice president could tell it was a Ponzi scheme.

So why didn't these banks alert the authorities? It reminds me of the Catholic church scandal. When the priests are caught diddling the alter boys, the powers that be just moved them to a new diocese. More fresh meat for the predators. The banks did the same thing to Adams. Figured out what he was up to, and then sent him to the bank down the street.

All those guys ought to have sleepless nights for the next several years as this thing plays out.

Anonymous said...

The receiver's recovery as a percentage of the loss in Madoff (about 75%) is nothing short of extraordinary. If Adams' receiver does half as well, I'll be surprised. I think she's currently at less than 10%, although she has time and an incentive to churn forward.

I disagree with the above post who says Adams' fraud was more destructive than Madoff's. That just isn't true. In Madoff's fraud, many lost all they had.

Anonymous said...

It is much too early to compare the Madoff recovery to the Adams recovery. Mills has had months, Picard has had years, and I suspect but do not know that the information Picard had to work with with was and is much more complete and in-depth than what Mills has now or will ever receive. On top of which, for numerous Madoff "investors," this was a small part of a large investment portfolio, so they quickly negotiated a "give back" early on and with little or no resistance. Two teams of "big law" partners/firms fighting it out in this type of litigation can burn through huge piles of client cash, and neither Picard nor many from whom he sought recovery could have economically justified such a fight. I cannot vouch for the truth of this, but I was told that one prominent person was quoted a _retainer_ of twice the amount sought by Picard to fight over it. A settlement was quickly negotiated and a check written (with appropriate tax write-offs, etc.) with no real damage done to that person's finances. Likely as not, that is the stage at which the Adams recovery litigation currently stands.

One problem I do foresee with recovery in the Adams case is that a lot of the funds are long gone, in and out of the hands of innumerable and innocent third-, fourth-, fifth-hand, etc., parties, i.e., Adams sent a "profit" check to John Smith, who used the money to buy a primary residence from a totally innocent seller, and then, that seller used it to buy another home in some other state, etc., etc. The "avenue of potential recovery" generally dead-ends at John Smith. Now, if John has a similar sum sitting in a bank or other readily-reachable assets, that is one thing, but if he does not have anything remotely close to that amount in reachable assets, it becomes that much more difficult to cost-effectively (and permissibly) recover.

Suscribe to latest on JJ.

Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel


Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).

Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.

In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS