The Supreme Court will not let the trustee working to recover money for Bernard Madoff's investors sue major financial institutions for their role in Madoff's massive fraud.
The court refused Monday to hear an appeal from trustee Irving Picard, who wants to pursue tens of billions of dollars from UBS, HSBC Bank and other institutions. In separate rulings, the court also declined to hear appeals from victims of the Allen Stanford Ponzi scheme, a former American International Group CEO, and from Google.
Picard, as trustee for the Securities Investor Protection Corp., has brought claims in bankruptcy court alleging that the institutions were complicit in Madoff's vast Ponzi scheme because they provided him with financial services while ignoring obvious signs he was a con artist.
A federal appeals court ruled that Picard doesn't have legal standing to make claims against the financial institutions that Madoff's burned customers could make themselves.