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Foreign Madoff Investors Ask High Court to Block Clawback Suits

Sept. 3, 2019, 3:58 PM

Foreign investors who benefited from Bernie Madoff’s infamous $19 billion Ponzi scheme are asking the Supreme Court to quash the trustee’s attempt to recover transferred cash.

U.S. bankruptcy law doesn’t allow the trustee to recover about $4 billion that these investors gained through foreign “feeder funds” that invested in Madoff’s scheme, according to an Aug. 30 filing with the high court by the investor group, including units of HSBC Holdings Plc, UBS Group AG and Credit Suisse Group AG.

Their petition comes after the U.S. Court of Appeals for the Second Circuit in February overruled lower courts’ decisions that prohibited ...