UPDATE 1-Madoff, Stanford fraud victims dealt setbacks by U.S. top court

lunes 30 de junio de 2014 11:52 GYT
 

(Adds Madoff trustee, Stanford receiver comments, paragraphs 6-7)

By Jonathan Stempel

June 30 (Reuters) - Victims of the Ponzi schemes of Bernard Madoff and Allen Stanford, two of the largest in U.S. history, suffered setbacks on Monday as the U.S. Supreme Court refused to hear appeals in two cases seeking to recoup more money for them.

In the Madoff case, the court rejected a request by Irving Picard, the trustee liquidating Bernard L. Madoff Investment Securities LLC, to review the dismissal of his claims against banks he accused of enabling Madoff's fraud.

Separately, the court rejected a request by Ralph Janvey, a receiver unwinding Stanford's businesses, to review a ruling that blocked him from pursuing claims against Stanford employees on behalf of the receivership's creditors, not the businesses themselves.

In both cases, lower courts concluded that Picard and Janvey lacked standing to bring their respective claims.

The Supreme Court did not give reasons for its decisions, which leave intact a June 2013 ruling in the Madoff case by the federal appeals court in New York, and an August 2013 ruling in the Stanford case by the federal appeals court in New Orleans.

Amanda Remus, a spokeswoman for Picard, said the trustee respected the decision in the Madoff case, and will still pursue $3.5 billion of bankruptcy claims against international banks such as Switzerland's UBS AG and Britain's HSBC Holdings Plc.

Kevin Sadler, a lawyer for Janvey, said the receiver is disappointed with the decision in the Stanford case, and will continue to press claims on behalf of more than 18,000 victims against those who profited from or aided Stanford's fraud.   Continuación...