Madoff Trustee To Know Soon About Stopping Fairfield Suit

Stamford Advocate – Bloomberg News – The trustee for Bernard L. Madoff Investment Securities Inc. is near finding out whether he has succeeded in a third attempt at halting lawsuits or settlements where customers threaten to deplete assets of defendants accused of receiving money stolen from Madoff customers.

Madoff trustee Irving Picard started a lawsuit in bankruptcy court as the result of a settlement made public in November where Walter Noel and other individuals associated with Fairfield Greenwich Group in Greenwich agreed to pay more than $50 million to investors in the funds they managed.

The Fairfield Greenwich funds were among the largest investors in Madoff’s scheme.

Picard hopes to stop the settlement because it would aid only some of those Madoff defrauded. If Picard makes a settlement or obtains judgments against Noel and the other Fairfield Greenwich insiders, the money will go to all Madoff customers.

The Fairfield Greenwich insiders and their investors prevailed on U.S. District Judge Victor Marrero to take the suit away from bankruptcy court. By last week, the last papers were filed on the question of whether Picard is entitled to a preliminary injunction halting the settlement. The parties are awaiting a decision by Marrero.

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