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IN RE BERNARD L. MADOFF INV. SECURITIES LLC

Bankruptcy No. 08-01789 (BRL). Adversary No. 09-1305 (BRL).

454 B.R. 317 (2011)

In re BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Debtor. Irving H. Picard, as Trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC, Plaintiff, v. Cohmad Securities Corporation, et al., Defendants.

United States Bankruptcy Court, S.D. New York.

August 1, 2011.

Attorney(s) appearing for the Case

Baker & Hostetler LLP, By: David J. Sheehan , John W. Moscow , Marc E. Hirschfield , Oren J. Warshavsky , New York, NY, for Plaintiff Irving H. Picard, Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff.

Vinson & Elkins LLP, By: Clifford Thau , Steven Paradise , Joseph F. Kroetsch , New York, NY, for Defendants Cohmad Securities Corporation, Maurice J. Cohn, Marcia B. Cohn, Milton S. Cohn, and Marilyn Cohn.

Butzel Long, P.C., By: Eric B. Fisher , New York, NY, Siegel, Lipman, Dunay Shepard & Miskel, LLP, By: Kenneth Lipman , Boca Raton, FL, for Defendants Richard Spring, The Spring Family Trust, and The Jeanne T. Spring Trust.

Coppel, Laughlin, Blount & Lavin, LLP, By; Mark A. Blount , John J. Lavin , Chester, NJ, for Defendants Alvin J. Delaire, Jr. and Carole Delaire.

Drohan Lee, LLP, By: Vivian R. Drohan , New York, NY, for Stanley Mervin Berman, Joyce Berman, and the S & J Partnership.

Rattet, Pasternak & Gordon Oliver LLP, By: James B. Glucksman , Harrison, NY, for Defendant Jane Delaire a/k/a Jane Delaire Hackett.

Hoffinger Stern & Ross, LLP, By: Jack S. Hoffinger , Fran Hoffinger , New York, NY, for Defendants Cyril Jalon, the Estate of Elena Jalon, The Joint Tenancy of Phyllis Guenzburger and Fabian Guenzburger, and The Joint Tenancy of Robert Pinchou and Fabian Guenzburger.

Edward H. Kohlschreiber , Edward H. Kohlschreiber Sr. Rev. Mgt. Trust, Pro Se.

MEMORANDUM DECISION AND ORDER DENYING DEFENDANTS' MOTIONS TO DISMISS TRUSTEE'S COMPLAINT

BURTON R. LIFLAND, Bankruptcy Judge.

Like Icarus, were the Cohmad Defendants singed by flying too close to the sun?1

Before this Court are the motions (the "Motions to Dismiss") of (1) Cohmad Securities Corporation ("Cohmad"), Maurice "Sonny" J. Cohn ("Sonny Cohn"), Marcia B. Cohn ("Marcia Cohn"), Milton S. Cohn (...

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