Lax & Neville LLP has been retained by many innocent victims of the Madoff Ponzi scheme, who are being sued through clawback claims by the Trustee overseeing the Madoff liquidation. These claims seek to recover funds from innocent victims who withdrew more money than they deposited into the Madoff Ponzi scheme. It appears that the Trustee is seeking to recover only these net winnings from the innocent investors' withdrawals in the six (6) years prior to the bankruptcy filing.
We understand that many Madoff victims will not have adequate funds to pay the damages requested in the clawback claims and/or to pay counsel an exorbitant retainer to defend the actions. We will utilize our relationship with the Trustee and our knowledge of this action, as we have remained at the forefront since its inception, to offer low-cost, reliable and exceptional assistance to our clients. To this end, our firm has recruited additional bankruptcy counsel with specific experience in avoidance and preference claims, to assist both our clients and us in defense of these claims.
Strategically, the best solution for many of the innocent victims may be to attempt to settle quickly and quietly with the Trustee at a mediation based on the victims' recoverable assets. However, some victims may have considerable assets that could satisfy the damages requested, in which case, another course of action would be appropriate. Though there are many common legal defenses and issues of fact present in this litigation, we have also noticed that each case is unique in some fashion. We could use this uniqueness as a legal defense or equitable resolution to the matter.
If you receive a clawback claim, or know someone who has, please contact either Barry Lax or Brian Neville. We are confident that our firm can assist you in providing options and guidance at this difficult time.