Court Agrees to Pull Back Madoff Action From Bankruptcy Court to Hear RICO Issues

The U.S. District Court for the Southern District of New York June 6 directed the withdrawal of the Racketeer Influenced and Corrupt Organizations Act-based adversary proceeding filed by Madoff bankruptcy trustee Irving Picard against Bank Medici’s principal shareholder, her family, and related entities (Picard v. Kohn).

Noting that a written opinion is “forthcoming,” Judge Jed Rakoff said in a brief order that he anticipated the return of the action against Austrian banker Sonja Kohn to the bankruptcy court once the issues related to the RICO claims against Italian financial institution UniCredit S.p.A. are resolved.

‘Building Block.’

In December ...