Madoff Trustee’s $3 Billion Clawback Suit Survives Dismissal Bid

The independent trustee tasked with cleaning up multi-billion dollar losses from Bernie Madoff’s now-defunct investment firm can continue to pursue a Taiwanese company to recover $3 billion it received from history’s largest Ponzi scheme.

Judge Cecilia G. Morris of the US Bankruptcy Court for the Southern District of New York on Thursday denied Union Securities Investment Trust Co.'s motion to dismiss Picard’s 2012 complaint.

Trustee Irving Picard previously sued and then settled with Fairfield Sentry Limited, a “feeder fund” that funneled investment returns to individual investors, for a judgment for $3.05 billion. But Fairfield only paid back $70 million to ...