Clawback, Madoff, Liquidation, Investing, Securities, Fraud, Ponzi Scheme


At a Meeting of Creditors held on February 20, 2009, counsel for the trustee overseeing the liquidation of Bernard L. Madoff Investment Securities, LLC, announced the advent of "clawback" suits seeking to recover sums paid out to defrauded investors.' This Essay explains the legal framework for the clawback suits and anticipates that many investors in the Ponzi scheme 2 will not have submitted claims by the July 2, 2009 deadline, which may result in clawback litigation before multiple courts. The Essay then discusses ways to streamline clawbacks and other Madoff-related litigation so that investors who have already been defrauded are not further damaged by the measures taken to compensate them. It closes with an invitation for additional proposals.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.