Madoff Trustee Picard Wins Power of Attorney Over U.K. Unit

/Home/Madoff Trustee Actions/Trustee Info - Madoff Investment Securities LLC

Madoff Trustee Picard Wins Power of Attorney Over U.K. Unit


By David Glovin

March 24 (Bloomberg) -- Irving Picard, who was appointed by the Securities Investor Protection Corp. to unwind Bernard Madoff’s businesses, won power of attorney over the money manager’s London unit.

U.S. District Judge Louis Stanton yesterday awarded Picard legal authority over London-based Madoff Securities International Ltd., over the objection of U.S. prosecutors in New York. Stanton’s order was entered into records in Manhattan federal court today.

Stanton, who is overseeing a civil lawsuit against Madoff by the U.S. Securities and Exchange Commission, also granted a request by a court-appointed receiver, Lee Richards, to terminate the receivership because his role has been assumed by U.S. prosecutors, Picard and U.K. liquidators.

The receivership is “discharged and terminated,” Stanton said in a two-page order. Richards had previously had the power of attorney over Madoff International.

Kevin McCue, a spokesman for Picard, didn’t immediately return an e-mail request for comment.

SIPC, a government-backed corporation that covers losses when brokerages fail, is conducting a broad investigation of the assets of Madoff’s New York-based firm, Bernard L. Madoff Investment Securities LLC. His investigators have so far identified about $1 billion in assets, which will be used to compensate investors.

Madoff International

Madoff International was owned almost exclusively by Madoff himself and served as his proprietary trading unit, Picard said in a Feb. 19 filing with a London court.

David Sheehan, a lawyer for Picard, said at a court hearing in New York yesterday that he needs the power to aide his efforts to quickly recover assets for investors. Prosecutors said their investigation may be hindered at some future point if the power is transferred to Picard.

Madoff pleaded guilty March 12 to defrauding investors by using money from new ones to pay off old ones in a classic Ponzi scheme. Before his Dec. 11 arrest, Madoff had told his thousands of clients that they had about $65 billion, prosecutors said. Madoff is in jail awaiting his sentencing.

The case is SEC v. Madoff, 08-10791, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporters on this story: David Glovin in federal court in Manhattan at dglovin@bloomberg.net;

Last Updated: March 24, 2009 18:10 EDT