Madoff Trustee’s Win Over Citibank Stands as Justices Deny Review

The U.S. Supreme Court declined to review whether Citibank has the burden to prove that it acted in good faith in accepting $343 million from Bernie Madoff’s Ponzi scheme, as the banking giant faces a trustee’s attempt to claw back the money.

Citibank petitioned to the high court after the U.S. Court of Appeals for the Second Circuit said the Madoff estate trustee seeking to recover fraudulent transfers doesn’t have the burden of proving Citibank’s bad faith. It’s the recipient who must prove good faith, the appellate court said.

The Second Circuit ruling “altered the course” of nearly 100 lawsuits ...