Bloomberg Law
June 1, 2020, 1:33 PM

Madoff Trustee Can Sue Foreign Investors After Justices Bow Out

Daniel Gill
Daniel Gill
Reporter

The U.S. Supreme Court left intact an appeals court ruling that victims of Bernie Madoff’s Ponzi scheme can claw back more than $3 billion from overseas investors.

The justices decided Monday not to take up the case, which turns on whether the trustee overseeing recovery for Madoff’s victims can sue indirect recipients of “fraudulent conveyances” if the transfers occurred outside the U.S. The U.S. Court of Appeals for the Second Circuit ruled in February 2019 that such lawsuits could go forward.

The money at issue was transferred by Bernard L. Madoff Investment Securities LLC to offshore “feeder funds,” which then ...

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