Unicredit Wants to Move a Portion of the Madoff Trustee’s Lawsuit

by San Antonio Attorney

Unicredit has asked the court that a portion of the Bernard Madoff trustee’s $19.6 billion lawsuit against the Italian bank charged of facilitating the Ponzi scheme would be moved out of the bankruptcy case.

In December, Irving Picard, a trustee appointed by the court for the liquidation of Madoff, has filed lawsuits against the banks that were allegedly facilitating the Madoff scam.

In February, Unicredit argued that the litigation should be brought out of the bankruptcy case since it is not related to the bankruptcy claims. The charge against the bank under the bankruptcy case could also result in a redundant payback as well as affect the timely disposal of the main case.

The US District Judge Jed S. Rakoff will give a decision on Friday whether or not he will move the non-bankruptcy matters out of the case.

The court judge did not make a call regarding Unicredit’s request that the court’s decision would only be specifically framed for the bank, but said that he will take it under careful consideration.

Bernard Madoff, the 73-year old mastermind of the biggest Ponzi scheme of all time, has been sentenced to 150 years of imprisonment.

According to court papers filed recently, Madoff has paid a total of $318.4 million to its customers in March. $148.9 million of the amount went to Baker & Hostetler LLP, the trustee’s law firm.

The fees of Picard’s law firm had been an issue for the judge who said yesterday that he does not understand why four attorneys are needed for the case. He has read about Picard and his law firm’s fees and expenses which add up to $152.6 million.

The Unicredit lawsuit defendants will be allowed to file for a case dismissal until July 25.

Bankruptcy news is located on San Antonio Attorney

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