The Supreme Court relinquished the cases of certain entities that have fallen victim to the Ponzi schemes of Bernie Madoff and Allen Stanford.
Both the Madoff and Stanford cases were thrown out.
How did these cases come before the Supreme Court?
- In the Madoff case, the Trustee, Irving Picard, who was in charge of delegating the liquidation of the Bernie L. Madoff Investment Securities LLC, requested the review the dismissal of his claims against the banks he accused of enabling Madoff’s scheme denied.
- Inside the Stanford case, Ralph Janvey, a person who was involved with unwinding Stanford’s businesses, was denied the opportunity to pursue the Stanford employees on behalf of creditors.
The Supreme Court has yet to release reasons for denying these cases. Lower courts have ruled that both claims lack standing.
Picard has apparently been able to recover $9.82 billion, with $17.5 billion left to collect. Picard attempted to sue companies like JP Morgan and Chase for their interaction with Madoff, however, they reached a $325 million settlement.
Janvey was able to earn court approval over a $55 million repayment plan to people who purchased certificates of deposits from Stanford, in 2013.