Court won't allow Madoff trustee to sue banks

By The Associated Press | Posted - Jun. 30, 2014 at 7:41 a.m.



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

WASHINGTON (AP) — The Supreme Court will not let the trustee working to recover money for Bernard Madoff's investors sue major financial institutions for their role in Madoff's massive fraud.

The court refused Monday to hear an appeal from trustee Irving Picard, who wants to pursue tens of billions of dollars from UBS AG, HSBC Bank PLC and other institutions.

Picard, as trustee for the Securities Investor Protection Corporation, has brought claims in bankruptcy court alleging that the institutions were complicit in Madoff's vast Ponzi scheme because they provided him with financial services while ignoring obvious signs he was a con artist. A federal appeals court ruled that Picard doesn't have legal standing to make claims against the financial institutions that Madoff's burned customers could make themselves.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast