IN RE BERNARD L. MADOFF INV. SECURITIES LLC

Docket Nos. 10-2378-bk(L); 10-2676-bk(con); 10-2677-bk(con); 10-2679-bk(con); 10-2684-bk(con); 10-2685-bk(con); 10-2687-bk(con); 10-2691-bk(con); 10-2693-bk(con); 10-2694-bk(con); 10-2718-bk(con); 10-2737-bk(con); 10-3188-bk(con); 10-3579-bk(con); 10-3675-bk(con).

654 F.3d 229 (2011)

In re BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Debtor.

United States Court of Appeals, Second Circuit.

Decided: August 16, 2011.


Attorney(s) appearing for the Case

Helen Davis Chaitman , Becker & Poliakoff, LLP, New York, NY, ( Peter Schuyler , on the brief), for Appellants Diane and Roger Peskin, et al.

Karen E. Wagner , Davis Polk & Wardwell LLP, New York, NY, ( Brian S. Weinstein , Jonathan D. Martin , on the brief), for Appellants Sterling Equities Associates, Arthur Friedman, David Katz, Gregory Katz, Michael Katz, Saul Katz, L. Thomas Osterman, Marvin Tepper, Fred Wilpon, Jeff Wilpon, Richard Wilpon, Mets Limited Partnership.

Barry R. Lax , Lax & Neville, New York, NY, ( Brian Neville , Brian Maddox , on the brief), for Appellants Mary Albanese, et al.

Seth C. Farber , Kelly A. Librera , Dewey & LeBoeuf LLP, New York, NY, for Appellant Ellen G. Victor.

Carole Neville , Sonnenschein Nath & Rosenthal LLP, New York, NY, for Appellants Marsha Peshkin IRA, Michael and Meryl Mann, Barry Weisfeld.

Matthew Gluck , Jonathan M. Landers , Brad N. Friedman , Jennifer L. Young , Milberg LLP, Stephen A. Weiss , Christopher M. Van de Kieft , Parvin K. Aminolroaya , Seeger Weiss LLP, New York, NY, for Appellants The Aspen Company, et al.

David B. Bernfeld , Jeffrey L. Bernfeld , Bernfeld, DeMatteo & Bernfeld, LLP, New York, NY, for Appellants Michael Schur and Edith A. Schur.

David Parker , Matthew J. Gold , Jason Otto , Kleinberg, Kaplan, Wolff & Cohen, P.C., New York, NY, for Appellants Lawrence Elins, Malibu Trading and Investing, L.P.

Stanley Dale Cohen , New York, NY, for Appellants Lee Mellis, Jean Pomerantz, Bonnie Savitt.

Jeffrey A. Mitchell , Gibbons, P.C., New York, NY, for Appellant Donald G. Rynne.

Daniel M. Glosband , Goodwin Procter LLP, Boston, MA ( Larkin M. Morton , Goodwin Procter LLP, New York, NY, on the brief) for Appellants Jeffrey A. Berman, et al.

Chryssa V. Valletta , Phillips Nizer LLP, New York, NY, for Appellants Herbert Barbanel, Alice Barbanel.

Lawrence R. Velvel , pro se, Andover, MA, for Appellant Lawrence R. Velvel.

Josephine Wang , General Counsel, Securities Investor Protection Corporation, Washington, DC ( Kevin H. Bell , Senior Associate General Counsel for Dispute Resolution, Christopher H. Larosa , Associate General Counsel, Lauren Attard , Staff Attorney, on the brief), for Appellee Securities Investor Protection Corporation.

David J. Sheehan , Baker Hostetler LLP, New York, NY, ( Thomas D. Warren , Wendy J. Gibson , Seanna R. Brown , on the brief), for Appellee Irving H. Picard, as Trustee for the Substantively Consolidated Securities Investor Protection Act Liquidation of Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff.

Michael A. Conley , Deputy Solicitor for Securities & Exchange Commission, Washington, DC, ( David M. Becker , General Counsel, Mark D. Cahn , Deputy General Counsel, Jacob H. Stillman , Solicitor, Katharine B. Gresham , Assistant General Counsel, on the brief), for Amicus Curiae Securities & Exchange Commission.

Before: JACOBS, Chief Judge, LEVAL and RAGGI, Circuit Judges.


DENNIS JACOBS, Chief Judge:

In the aftermath of a colossal Ponzi scheme conducted by Bernard Madoff over a period of years, Irving H. Picard has been appointed, pursuant to the Securities Investor Protection Act, 15 U.S.C. § 78aaa et seq. ("SIPA"), as Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC, id. § 78eee(b)(3). Pursuant to SIPA, Mr. Picard has the general powers of a bankruptcy trustee, as well as additional...

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