Second Circuit Applies Federal Bankruptcy Law, Not Securities Law, In Madoff SIPA Liquidation

The Second Circuit applied federal bankruptcy law when holding that good faith is an affirmative defense.

14 minute readOctober 01, 2021 at 12:05 AM
By
Michael L. Cook
Second Circuit Applies Federal Bankruptcy Law, Not Securities Law, In Madoff SIPA Liquidation

"[L]ack of good faith in a SIPA [Securities Investor Protection Act] liquidation applies an inquiry notice, not willful blindness, standard, and that a SIPA trustee does not bear the burden

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