Roy T. Englert, Jr., Wins Second Circuit Appeal Allowing Madoff Trustee to Claw Back Ponzi Scheme Proceeds From Overseas

On February 25, 2019, the U.S. Court of Appeals for the Second Circuit ruled for Robbins Russell client, the trustee of Bernard Madoff’s now-defunct investment firm, allowing the trustee to pursue claims against major investors that invested with Madoff through off-shore funds. Robbins Russell partner Roy T. Englert, Jr., argued on behalf of the trustee. Englert persuaded the court to overturn a 2014 district court decision holding that money transferred overseas is out of the trustee’s reach. The unanimous panel accepted Englert’s arguments in all respects. It held that U.S. law allows the trustee to claw back funds that were transferred by the Madoff firm’s foreign feeder funds, even though those funds are overseas. Recouping those funds for the estate will increase the amount of funds available to compensate investors who were the victims of Madoff’s scheme.

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