Second Circuit Affirms Protection of the Section 546(e) Safe-Harbor Shield for Certain Madoff Investors

The trustee for Bernard L. Madoff Investment Securities LLC (BLMIS) may not clawback money paid out by BLMIS to hundreds of its customers, says the Second Circuit. This article explores the arguments advanced in support of, and in opposition to, avoiding the payments made by BLMIS to its customers.

12 minute read February 28, 2015 at 11:00 PM
By
Steven B. Smith
Second Circuit Affirms Protection of the Section 546(e) Safe-Harbor Shield for Certain Madoff Investors

The answer is no. Irving H. Picard, the trustee (the Trustee) for Bernard L. Madoff Investment Securities LLC (BLMIS), appointed pursuant to the Securities Investor Protection Act (SIPA), may not clawback money paid out by BLMIS to hundreds of its customers.

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