At Lax & Neville LLP, in New York, we represent individuals targeted by lawsuits for the recovery of money or property under the Securities Investor Protection Act of 1970 (SIPA) or United States Bankruptcy Code. We are currently representing victims of Bernard L. Madoff Investment Securities, LLC and other entities against trustees seeking to bring clawback actions alleging fraudulent conveyance and/or preference claims.
If you have received a clawback letter from a bankruptcy trustee or a representative for the Securities Investor Protection Corporation (SIPC), it is important to take swift action to protect your rights and interests. Contact us to schedule a free consultation with an attorney.
Defense for alleged avoidance actions and preference actions
Often brought in the wake of a revealed Ponzi scheme, clawback actions are brought by the trustee to recover funds advanced to the investor by the architect of the Ponzi scheme. Clawback actions attack the motives of those named in the lawsuit, often allege the following:
- Avoidance actions: Also known as fraudulent conveyance or transfer, avoidance actions typically occur when a person intentionally reallocates their resources by transferring titles of property or by distributing liquid assets, leaving little to nothing for creditors. In the context of the Madoff Ponzi scheme, the trustee is seeking to claim back funds advanced to innocent Madoff victims. Especially in the case of what the trustee is calling "net winners". In our practice, we provide clawback litigation defense for victims of a Ponzi scheme.
- Preference actions: Preference actions are started by a trustee when an individual or a business allegedly pays certain debts 90 days prior to entering bankruptcy. Trustees may view these actions as preferential and unfair, and seek to recover the money from the recipients via legal action. Our lawyers provide strategic negotiation and strong representation to those being targeted for preference litigation.
Experienced counsel and representation for Bankruptcy and SIPA Matters
At Lax & Neville LLP, we have extensive experience handling clawback litigation. Our skilled lawyers understand what is at stake for our clients, and strive to protect their reputations, finances and businesses.
Contact Lax & Neville LLP for a free consultation with an experienced clawback litigation defense lawyer. Serving clients nationwide in securities, employment and investment law. Located on the corner of 41st Street & Broadway, New York, NY.