Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: October 18, 2013
The Firm
201-896-4100 info@sh-law.comThe public is set to get its first in-depth look at one of the biggest frauds in U.S. history. The criminal trial of five former employees of Bernard Madoff begins in New York this month.
While Madoff claims to have acted alone, the federal government’s investigation suggests otherwise. Key staff members, ranging from Madoff’s former secretary to computer programmers, face criminal charges of fraud and conspiracy in connection with the $17 billion Ponzi scheme.
The defendants are the only former employees not to accept plea deals and have instead chosen to challenge the government’s evidence against them. Bernie Madoff pleaded guilty to 11 criminal counts and is currently serving a 150-year prison term. While he is not expected to testify, Frank DiPascali, Madoff’s former chief financial officer, has agreed to take the stand for the prosecution in exchange for leniency. His testimony will play a crucial role in explaining how the massive role operated and detailing the specific role each defendant played.
In a separate legal action, Irving H. Picard, the trustee seeking reimbursement on behalf of scorned investors, recently asked the U.S. Supreme Court to decide whether he has standing to sue financial institutions like JPMorgan Chase and HSBC Holdings PLC for the role they may have played in aiding the Ponzi scheme. Picard contends that the banks ignored red flags that strongly suggested Madoff was operating a Ponzi scheme.
“Bernard L. Madoff did not act alone,” the brief argues. The scheme “could not have persisted for so long, or defrauded so many of so much, without a network of financial institutions, feeder funds and individuals who participated in his fraud or acquiesced in it — just like any large-scale financial fraud.”
The United States Court of Appeals for the Second Circuit sided with the bank, holding that because the trustee “stands in the shoes” of Madoff, he could not sue third parties alleged to have aided and abetted the fraud. Other federal courts have ruled differently, increasing the chances for Supreme Court review.
If you have any questions about these cases or would like to discuss the legal issues involved, please contact me, Jay Surgent, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!