SECURITIES INVESTOR PROT. v. MADOFF INVESTMENT

Adv. Pro. No. 08-01789 (SMB).

522 B.R. 41 (2014)

SECURITIES INVESTOR PROTECTION CORPORATION, Plaintiff, v. BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: Bernard L. Madoff, Debtor.

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

Signed December 5, 2014.


Attorney(s) appearing for the Case

Baker & Hostetler LLP, 45 Rockefeller Plaza, New York, New York 10111, David J. Sheehan, Esq. , Jorian Rose, Esq. , Amy E. Vanderwal, Esq. , Seanna R. Brown, Esq. , Bik Cheema, Esq. , Nicholas J. Cremona, Esq. , of Counsel, Attorneys for Irving H. Picard, Trustee for the SIPA Liquidation of Bernard L. Madoff Investment Securities LLC.

Securities Investor Protection Corporation, 805 Fifteenth Street, N.W., Suite 800, Washington, DC 20005, Josephine Wang, Esq.   Kevin H. Bell, Esq.   Lauren T. Attard, Esq. of Counsel Attorneys for Securities Investor Protection Corporation.

Law Offices of Joel L. Herz, 3573 E. Sunrise Drive, Suite 215, Tucson, Arizona 85718, Joel L. Herz, Esq. of Counsel Attorneys for Samdia Family, LP.

Stim & Warmuth, P.C., 2 Eighth Street, Farmingville, New York 11738, Paula J. Warmuth, Esq. , of Counsel Attorneys for Michael Most.

Hunton & Williams LLP, 200 Park Avenue, 53rd Floor, New York, New York 10166, Peter S. Partee, Sr., Esq. , Richard P Norton, Esq. , Robert A. Rich, Esq. , of Counsel Attorneys for Edward A. Zraick, Jr., Nancy Zraick, Patricia DeLuca and Karen Rich.

Akerman LLP, 666 Fifth Avenue, 20th Floor, New York, New York 10103, Susan Balaschak, Esq. , Michael I. Goldberg, Esq. , of Counsel, Attorneys for the Mittlemann Family Foundation.

Duane Morris LLP, 1540 Broadway, New York, New York 10036, Gerard S. Catalanello, Esq. , Patricia H. Piskorski, Esq. , of Counsel, Attorneys for Brian Ross, Esq.

Kleinberg, Kaplan, Wolff & Cohen, P.C., 551 Fifth Avenue, 18th Floor, New York, New York 10176, David Parker, Esq. , Matthew J. Gold, Esq. , of Counsel, Attorneys for Lawrence Elins.

Becker & Poliakoff LLP, 45 Broadway, 8th Floor, New York, New York 10006, Helen Davis Chaitman, Esq. , of Counsel Attorneys for Aaron Blecker, Adele Shapiro, Angela Tiletnick, Barbara Engel, Barbara Kotlikoff Harman, Ben Heller, Benjamin T. Heller Irrevocable Trust, Beth P. Feldman as Trustee, Beth P. Feldman as Trustee Dtd 11/15/82, Bruce N. Palmer, Carol Fisher, Carol Kamenstein, Chalek Associates LLC, David Chalek, Frances Reiss, Isabel Chalek, Jessica Decker, John Tzannes Trust, Mitchel Chalek, Morton Chalek, Peter Tzannes, Richard Mark Chalek, Robin Tzannes, Laura Hallick, as participant in Daprex Profit Sharing Plan and 401K Plan, David Drucker, David Shapiro, Hilda Drucker, Marilyn Komarc, Ptr of David Shapiro Nombrec, Myra M. Levine, Naomi Karp, Elaine Langweiler, Frederick H. Mandel (Partner), Irving M. Sonnenfeld, Deborah Shapiro, Edwin Michalove, Elaine R. Schaffer, Estate of Gabriel Friedman c/o Richard Friedman Executor, Boyer H. Palmer, Fern C. Palmer and Boyer H. Palmer, Ttees Fern C. Palmer Rec Tst, Fern C. Palmer, Frieda Low, Glenn Rechler, Gunther Unflat, Herbert Barbanel & Alice Barbanel NT Wros, Jonathan Schwartz as Trustee FBO Nancy M. Riehm, Keith Schaffer, Kenneth M. Kohl & Myrna Kohl, Kurt C. Palmer, Theresa R. Ryan, Marjorie Forrest, Martin R. Harnick, Steven P. Norton, NTC & Co. FBO Denis Casteli (19988), Manuel O. Jaffe MD, Richard M. Friedman, NTC & Co. FBO Robert Halio (26849), Robert Yaffe, Mishkin Family Trust, NTC & Co. FBO Adele Fox (111257), NTC & Co. FBO Jeffrey Shankman (111752), Marsh Peshkin Ira, NTC & Co. FBO Steven C. Schupak (096898), Bret Palmer, Callie A. Ostenson/Murray, Dana Lefavor, Heidi Holmers, Kelly Bunch, Megan Bunch, Oscar Palmer, Palmer Family Trust, Ryan Murray, Sophia Palmer, Pamela K. Marxen, Philip E. Miller, Robert K. Low, Roberta Schwartz, Robin L. Warner & Jon Warner, Rona Mast, Sage Realty c/o Malcolm Sage, Sandy Sandler, Sloan G. Kamenstein, Steven J. Andelman, Susan R. Andelman, Benjamin Rechler Trust c/o Mitchell Rechler, The Gaba Partnership, Willi Rechler Trust c/o Mitchell Rechler, Theresa R. Ryan and Lawrence J. Ryan Trustees, Timothy Shawn Teufel and Valerie Anne Teufel, Tracy D. Kamenstein, WDG Associates Inc Retirement Trust.

Greene Espel PLLP, 222 S. Ninth Street, Suite 2200, Minneapolis, Minnesota 55402, Lawrence M. Shapiro, Esq. of Counsel, Attorneys for Marion E. Apple.

Bernfeld, Dematteo, LLP, 600 Third Avenue, 15th Floor, New York, New York 10016, Jeffrey Bernfeld, Esq. of Counsel, Attorneys for Alan Winters, Edith Schur, Frederick Konigsberg, Susan Konigsberg, Harvey L. Werner Revocable Trust U/A/D 8/31/82, Jeffrey R. Werner 11/1/98 Trust, Manfred Franitza, Margrit Franitza, Marital Trust No. 1 created under the Harvey L. Werner Revocable Trust U/A/D 8/31/82 and Werner Foundation.

Morgan, Lewis & Bockius LLP, 101 Park Avenue, New York, New York 10178, Bernard I. Garbutt, III, Esq. , of Counsel, Attorneys for Kostin Company.

Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, New York 10019, Joseph T. Baio, Esq. , Todd G. Cosenza, Esq. , of Counsel, Attorneys for Westport National Bank, a division of Connecticut Community Bank, N.A.

Elliot G. Sagor, Esq., Pro Se, 470 Park Avenue South, 10th Floor North, New York, New York 10016.

Milberg LLP, One Pennsylvania Plaza, New York, New York 10119, Matthew Gluck, Esq., Matthew A. Kupillas, Esq. , Jennifer L. Young, Esq. , Joshua E. Keller, Esq. of Counsel, Jointly with Seeger Weiss LLP, attorneys for Jan Marcus Capper, Gary Albert, Jerry Guberman Trust Dated 12/23/93, Harold A. Thau (IRA), John Denver Concerts Inc. Pension Plan Trust, Joseph Sloves (IRA), Laurence E. Leif, Onesco International, Ltd., Potamkin Family Foundation I, Inc., June Pollack T/O/D to Keith L. Pollack and Cary G. Pollack, Linda Berger Howard Berger J/T WROS, Judith Rock Goldman, Anita Karimian, Gary L. Harnick (IRA), William M. Wiessner Family Trust, /Sheila A. Woessner Family Trust TIC, Jonathan Michaeli (IRA), The Adina Michaeli Revocable Trust, Trudy Schlachter, Gerald Blumenthal (IRA), Steven v. Marcus Separate Property Marcus Family Trust, Richard Roth (IRA), Richard Roth, Lynda Roth, Michael Roth, Michael Roth (IRA), Florence Roth, Lester Kolodny (IRA), P. Charles Gabriele (IRA), Delia Gail Rosenberg, Aspen Fine Arts Co., Elizabeth Harris Brown, The Douglas G. Brown Revocable Trust, Do Stay, Inc., Elbert R. Brown, Trustee, Viola Brown, Trustee U/T/D 12/29/88, Lawrence I Brown and Barbara Brown J/T WROS, Lewis R. Frank, Martin Gelman & Michael Dancer JT/WROS, Barbara Harris, Deborah Katz, Jack Kaufman and Phyllis Kaufman J/T WROS, Michael Mathias and Stacey Mathias J/T WROS, Katharine Brown Trust, Barbara Schlossberg, Bernard Seldon, Jonathan Sobin, Leila F. Sobin.

Seeger Weiss LLP, 77 Water Street, 26th Floor, New York, New York 10005, Stephen A. Weiss, Esq. , Parvin K. Aminolroaya, Esq. , of Counsel, Attorneys for Melvyn Weiss and Barbara Weiss JTWROS.

K & L GATES LLP, 1601 K Street NW, Washington, DC 20006, Richard A. Kirby, Esq. , Laura K. Clinton, Esq. , of Counsel, Attorneys for Joel A. and Kerry E. Blum, Jt. Owners, Norman J. Blum Living Trust.

Dentons U.S. LLP, 1221 Avenue of the Americas, New York, New York 10020, Carol Neville, Esq. , of Counsel, Attorneys for Davina Greenspan & Lori Friedman, Toby Hobish (IRA), Alvin Gindel Revocable Trust Agreement, Estate of Helen Shurman, Lapin Children LLC, Laura Guggenheimer Cole, Norma Shapiro (IRA), Norma Shapiro Trustee, Norma Shapiro, Barbara Berdon, Epic Ventures LLC, David R. Markin 2003 Trust, David Markin, Cecile Rudnick.

Lax & Neville LLP, 1450 Broadway, 35th Floor, New York, New York 10018, Barry R. Lax, Esq. , Brian J. Neville, Esq. , of Counsel, Attorneys for Mary Albanese IRA, Dominick Albanese Trust Account B, David Belosa & Bari Belosa J/T WROS, Gordon Bennet 1988 Trust, Watershed Foundation, Harriet Bergman, Leonard Bergman Credit Shelter Trust FBO Harriet Bergman, Adriane Biondo, Audrey and Robert Orenbach, Mildred Wang, Shelley Roth, Ira Roth, Alexander Roth, Evan Roth, Jordan Roth, Brow Family Partnership, Carol Bulman (IRA), William Jay Cohen, Trustee, Elinor P. Cohen Trustee Dated 11/14/89 FBO Eleanor P. Cohen, Coronado S A, Jacob Davis and Marilyn Davis, Trustees, Jacob Davis IRA, Marilyn Davis & Jacob Davis ttees UTA by Marilyn Davis, Karl Drobitsky, Richard Eaton IRA, Fammad LLC, Myron Feuer IRA, Peds Retirement Trust, PJFN Investors LP, Selma Fox IRA, Jerome Fox IRA, Fox Family Partnership LLC, Accu Plan Employees' Profit Shareing Trust, Constance Friedman, Allan Robert Greene, Julia Greene, Allen Robert Greene as custodian, Bruce Hector MD, Jay M. Izes IRA, Dori Kamp, Howard L. Kamp, Abe Kleinman IRA, Bonnie Kansler IRA, Dale Kleinman, Marjorie Kleinman, Matthew Kansler, Deborah Kaye, Elliot Kaye, Lawrence Kaye Trustee Evelyn Kaye Trust FBO Judith Knight et al., Lawrence Kaye and Susan Kaye Trustees, Lawrence Kaye IRA, Paul Kaye, Robert Kehlmann Trustee, Trust FBO Ephraim Kehlmann U/A DTD 12/30/72, Robert Kehlmann and Diana Tosto Kehlmann, Robert Kehlmann Trustee Tst UW William Kehlmann 1/23/65, Zipora Wagreich Trustee U/A Dtd 11/6/90, Donald S. Kent, Madeline R. Kent Living Trust, Sheila Kolodny, The Korn Family Limited Partnership, Robert Korn Revocable Trust, Donna Lefkowitz Revocable Trust dtd 12/13/04, Laurence E. Leif IRA, Rose Less, Ruth Mechaneck, The Mechaneck Rev Liv Trust DTD 5/11/94, Harriet K. Meiss Trust, morse Family Foundation Inc., Linda Morese Revocable Trust dated 6/18/93, John Maccabee & Sherry More Maccabee Living Trust Dated 1/24/97, The HO Marital Appointment Trust, Michael Oshry, Suzanne Oshry & Meryl Evans Co-Trustees, White Orchard Investments, Ltd, Harry Pech and Jeffry Pech J/T WROS, Lanny Rose, JIR Enterprises LLC, Kenneth E. Roth, Elaine C. Schlessberg Trust Dated 8/26/2004, Norman Schlessberg Trust/Trustee, Robert L. Schwartz 2004 Revocable Trust Agreement, Anne Squadron IRA, Anne Strickland Squadron, Alana D. Gold, Alexander Squadron, Anna Rothwell, Arthur and Eleanor Squadron, William Squadron and Debra Lagapa, Catherine Shea, Daniel Squadron, Elena Prohaska Glinn, Elizabeth Shea, Eric Grode and Elizabeth Harre, Sarah B. Harre, Swing and David Harre, Jacob Squadron, Justin Shea, Laurel Squadron, Michael and Marcy Squadron, Neill P. Squadron, Pasquale and Marianna Bernardin, Peter and Carol Gold, Richard Squadron and Theodosia Price, Robert Vas Dias and Margaret Butcher, Samuel Squadron, Sarah D. Gold, Seth and Elizabeth Squadron, Vanessa Gang, Angelo Viola, Angelo Viola IRA, Laura Weill, Bette Wilkes, Jennie Wilkes, Sanuel Wilkes, Stephen Wilkes, Alan Goldstein IRA, Stephen Weisser, Barbara L. Larid c/o Roger Williams, Roger Williams and Miriam L. Williams.

Kachroo Legal Services P.C., 245 Park Avenue, 39th Floor New York, New York 10167 Gaytri D. Kachroo, Esq. of Counsel, Attorneys for The Diana Melton Trust, Dated 12/05/05.


SIPA LIQUIDATION

(Substantively Consolidated)

MEMORANDUM DECISION AFFIRMING APPLICATION OF THE TRUSTEE'S INTER-ACCOUNT METHOD TO THE DETERMINATION OF TRANSFERS BETWEEN BLMIS ACCOUNTS

The motion before the Court (the "Motion") concerns the appropriate methodology...

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