Answer

Annotated Bibliography – Bernard Madoff

Kendall B. June 22, 2015, The Wall Street Journal. Supreme Court Denies Bernie Madoff Trustee Appeal in Clawback Case. http://www.wsj.com/

According to this article by The Wall Street Journal, the Washington Supreme Court said that it was not ready to consider any bid by any court appointed trustee to claw back money from investors who had earlier benefited from the Bernard Madoff’s Ponzi scheme.  The ruling was specific to the fictitious profits that were supposedly paid out to the Madoff investors with claims that these profits were shielded by the provision of federal bankruptcy law. According to this law, securities-related payments are prohibited from any kind of recovery made by stockbrokers. As explained in the article, the trustee in the case who was Irving Picard sought a recoup of about $ 2 billion to be paid to him to enable him to distribute payments to investors who has lost money in Madoff’s fraud scheme. The article describes why the court decided to take that route. The court states that the law broadly states that the payments were made in connection with the security contracts although Mr. Madoff did not complete the security transactions that the intended to execute. His actions were not punishable by law in either way. However, the article does not explain why the appeal court ruling did not affirm the earlier decision made by the U.S District Judge.

Palank. J. Oct. 15, 2015.  The Wall Street Journal. Judge Revokes Sale of Firm’s Bernard Madoff Claim. http://www.wsj.com/

According to this article, a bankrupt judge agreed to undo all the sales of $230 million claims against Bernard Madoff and, therefore, liquidating the investment firm. The judge said that he would break off all the sale claims that were currently held by Major Madoff. This article explains the Fairfield deal Fund, which used nearly all its investor’s money to Mr. Madoff, who sought to make some pending sales after a settlement with another investor before he decided to change the playing field and drive up claims fetching the secondary markets. After the court ruling, Fairfield managed to get a $230 million claim against Bernard Madoff invest firm. The money was to settle down losses suffered by investors during the massive Ponzi scheme. The article goes ahead to explain the rationale of the different cases presented in court and gives reasons the judge decided to revoke some of them. However, the claims were later returned to the liquidator to realize the full value of the stakeholders.

Cohen M. Feb 25, 2016.The Wall Street Journal U.S. Unit of Abengoa files for Chapter 11 Protection. http://www.wsj.com/

A well-known company of renewable energy in the U.S filed for bankrupt protection. According to this journal article by Wall Street Journal, Abengoa Company filed for a $10 billion in asset debts and demanded the amounts to be paid in full by the Bernard Madoff. The journal continues to explain how Bernard Madoff trustees Irving said that he had new evidence that analysis how the accountant of the company helped perpetuate Madoff fraud scheme. The article goes ahead to explain how Martin Shkreli was fired without notice as chief executive of the enterprise. The company declared that it would continue pursuing the deal that was signed to buy drugs that were a threat to the Chagas disease. The Journal found evidence that the U.S Treasury had plans to give Puerto Roco’s pensioners extra protection in the aftermath of the bankruptcy.