Irving H. Picard v. Saul B. Katz et al
Filing 40
OPINION AND ORDER:#100832 In summary, the Court hereby dismisses all Counts of the Amended Complaint except Counts 1 and 11. Under Count 1, the Trustee may recover defendants' net profits simply by proving that the defendants did not provide value for the monies received, but the Trustee may recover the return of the defendants' principal only by proving that the defendants willfully blinded themselves to Madoff Securities' fraud. Finally, the Trustee can subordinate the defendants' own claims against the estate only by making the same showing required under Count 1 or its equitable equivalent. The parties are directed to appear in court tomorrow, September 28, 2011 at 3:00 P.M. to set a schedule for all further proceedings relating to the remaining claims. ( Status Conference set for 9/28/2011 at 03:00 PM before Judge Jed S. Rakoff.)(Signed by Judge Jed S. Rakoff on 9/27/2011) (djc) Modified on 9/28/2011 (jab).
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