Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

N.Y. Must Submit to Bankruptcy Judge, Trustee Picard Says

Oct. 4 (Bloomberg) -- The liquidator of Bernard Madoff’s firm said New York Attorney General Eric Schneiderman must submit to bankruptcy law that bars him from completing a $410 million settlement with Ezra Merkin, one of the con man’s former investors. Asking U.S. District Judge Jed Rakoff not to grant Schneiderman’s request that he review the case, trustee Irving Picard, who says only he can take Merkin’s money and share it among Ponzi victims, said he “seeks to protect estate assets from being dissipated,” according to a filing in federal court in Manhattan.

The attorney general, who has said the settlement money will go to investors not eligible for compensation by Picard, told Rakoff that Picard is interfering with his ability to enforce the law.

“Determination of this action will have broad ramifications for the ability of state law enforcement and regulatory agencies to exercise their authority to prosecute violations of state laws,’’ he said.

Link to Company News:{8776Z US <Equity> CN <GO>}

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: Charles Carter at ccarter12@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.