Judge Will Decide On Picard’s $9 Billion Lawsuit Against HSBC On July

by San Antonio Attorney

It will not be until the end of July before HSBC Holdings PLC finds out if the trustee of Madoff firm will get the judge’s approval to move forward with his lawsuit against the bank accusing it of helping in the Ponzi scheme.

The bank did not admit any wrong doing or fault of the accusations and according to its lawyers, the law did not permit the Madoff trustee sue the bank for financial fraud and misconduct.

After the arguments, Judge Jed Rakoff stated that he will need a considerable length of time to re-read the papers and so a written decision will be given by month-end of July.

In total, Judge Rakoff is going to make decisions on the oppositions to trustee Irving Picard’s five lawsuits against banking institutions which is worth approximately $100 billion.

Last December, Picard accused HSBC of helping in the Madoff Ponzi scheme. In the scheme, the existing customers are paid using the new investors’ funds. The lawsuit seeks to recover $9 billion on behalf of Madoff’s victims.

Irving Picard was appointed by the court to liquidate the Bernard L. Madoff Investment Securities firm.

According to the lawsuit, HSBC made, promoted and helped a network of international feeder funds located in Central America, Europe, and the Caribbean.

Bernard L Madoff was charged of the massive fraud in December 2008 and he confessed in orchestrating the Ponzi scheme. He was sentenced of 150 years imprisonment after his guilty plea to the charges against him.

UnitCredit SpA and JPMorgan Chase, which were also sued by Picard, made the same challenges. UniCredit SpA is an Italy-based banking organization that is included in Picard’s lawsuit against Sonja Kohn, an Austrian banker. The trustee seeks to recover $20 billion from the banks that were allegedly participating in the massive fraud. The allegations were denied by Sonja Kohn.

If you want to file for bankruptcy and you have questions about debt liquidation, know the facts and clarify misconceptions on debt liquidation by consulting a San Antonio bankruptcy attorney.

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