IN RE BERNARD L. MADOFF INV. SECURITIES LLC

Docket Nos. 12-410-bk(L), 12-437-bk(Con), 12-483-bk(Con), 12-529-bk(Con).

708 F.3d 422 (2013)

In re BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Debtor. James L. Kruse, Henry T. DeNero, Nancy S. DeNero, Charles F. Rolecek, C. Thomas Brown, Margaret H. Brown, Sally S. Beaudette, Marshall G. Rowe, Lee F. Wood, Harvey A. Taylor, Markian D. Stecyk, Donald H. Hangen, Martha L. Wood, Robert H. Scott, Molly McNaughton, Jan Feldman, James P. Dulany, Neva Rosamilia, Nicholas Rosamilia, Upstate New York Bakery Drivers and Industry Pension Fund, Claimants-Appellants, Bricklayers and Allied Craftsman Local 2 Annuity Fund, Bricklayers and Allied Craftsworkers Local 2, Health Benefit Fund, Bricklayers & Allied Craftworkers, Local No. 2, AFL-CIO, Building Trade Employers Insurance Fund, Central New York Laborers Annuity Fund, Central New York Laborers Health and Welfare Fund, Central New York Laborers Pension Fund, Central New York Laborers Training Fund, Construction Employers Association Of CNY, Inc., Construction and General Laborers' Local No. 633, AFL-CIO, Engineers Joint Welfare Fund, Engineers Joint Training Fund, International Brotherhood of Electrical Workers Local Union No. 43 and Electrical Contractors Pension Fund, International Brotherhood of Electrical Workers Local No. 43 and Electrical Contractors Welfare Fund, I.B.E.W. Local 241 Welfare Benefits Fund, I.B.E.W. Local 910 Welfare Fund, Laborers' Local 103 Annuity Fund, Laborers' Local 103 Welfare Fund, New York State Lineman's Safety Training Fund, Oswego Laborers' Local No. 214 Pension Fund, Plumbers, Pipefitters and Apprentices Local No. 112 Health Fund, Roofers' Local 195 Annuity Fund, Roofers' Local 195 Health & Accident Fund, Syracuse Builders Exchange, Inc./CEA Pension Plan, Service Employees Benefit Fund, Service Employees Benefit Fund of Upstate New York, S.E.I.U. Local 200 United, AFL-CIO, Syrabex, Inc., Syracuse Builders Exchange, Inc., U.A. Local 73, Plumbers & Fitters, AFL-CIO, Local 73 Retirement Fund, Upstate Union Health and Welfare Fund, Claimants, v. Securities Investor Protection Corporation, Irving H. Picard, Appellees, Securities and Exchange Commission, Intervenor.

United States Court of Appeals, Second Circuit.

Decided: February 22, 2013.


Attorney(s) appearing for the Case

William L. Chapman , Orr & Reno, P.A., Concord, New Hampshire, for Appellants James L. Kruse, Henry T. DeNero, Nancy S. DeNero, Charles F. Rolecek, C. Thomas Brown, Margaret H. Brown, Sally S. Beaudette, Marshall G. Rowe, Lee F. Wood, Harvey A. Taylor, Markian D. Stecyk, Donald H. Hangen, Martha L. Wood, Robert H. Scott, Molly McNaughton, Jan Feldman, and James P. Dulany.

Christopher H. Larosa ( Josephine Wang , Kevin H. Bell , on the brief), for Appellee Securities Investor Protection Corporation, Washington, D.C.

David J. Sheehan ( Jorian L. Rose , Thomas D. Warren , Wendy J. Gibson , Seanna R. Brown , Bik Cheema , on the brief), Baker & Hostetler LLP, New York, NY, for Appellee Irving H. Picard.

Michael L. Post ( Mark D. Cahn , Michael A. Conley , Jacob H. Stillman , John W. Avery , on the brief), for Intervenor Securities and Exchange Commission, Washington, D.C.

Helen Davis Chaitman , Becker & Poliakoff, LLP, New York, NY, for Appellants Neva Rosamilia and Nicholas Rosamilia.

Mark I. Silberblatt , Bisceglie & De Marco, LLC, Woodland Park, NJ, for Appellant Upstate New York Bakery Drivers and Industry Pension Fund.

Before: LEVAL, RAGGI, and LIVINGSTON, Circuit Judges.


REENA RAGGI, Circuit Judge:

Appellants are investors who lost money in the multi-billion dollar Ponzi scheme perpetrated by Bernard L. Madoff Investment Securities LLC ("BLMIS"). They here appeal from a judgment of the United States District Court for the Southern District of New York (Denise L. Cote, Judge) entered on January 6, 2012, which affirmed a June 28, 2011 order of the bankruptcy court for the same district (Burton R. Lifland, Bankruptcy Judge...

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