Court Approves $62 Million Recovery Agreement Between Madoff Trustee, Blumenfeld

Friday, December 5, 2014

On November 18th, the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) announced via press release that the U.S. Bankruptcy Court for SDNY approved a settlement between the Trustee and the defendants in Picard v. Edward Blumenfeld, et al.

The settlement motion was filed with the United States Bankruptcy Court for the Southern District of New York on October 17, 2014. The agreement has an aggregate potential value of approximately $62 million for the BLMIS Customer Fund. Howard Simon, Kim Longo, Tony Casas and Brian Kreutter are counsel to the SIPA Trustee for the liquidation of BLMIS in the settlement.

Howard spoke to the Wall Street Journal (subscription required), as well as to about the settlement: "[The] the Blumenfeld deal has been an arduous two-year process of mediations and negotiations resulting in a heavily negotiated but ultimately very beneficial settlement. The settlement is the best way to ensure the money can be collected from Mr. Blumenfeld, his New York real-estate company and his family."