Legal Opinion
Sec. Investor Prot. Corp. v. Bernard L. Madoff Inv. Sec. LLC (In re Madoff)
United States Bankruptcy Court, S.D. New York
Decided June 25, 2019No. Adv. Pro. No. 08-01789 (SMB) (Substantively Consolidated); Adv. Pro. No. 10-05286 (SMB)PublishedCited by 137 opinions
1Opinion of the Court
Some courts have used the following four-factor test to determine the existence of a Ponzi scheme:
1) deposits were made by investors; 2) the Debtor conducted little or no legitimate business operations as represented to investors; 3) the purported business operation of the Debtor produced little or no profits or earnings; and 4) the source of payments to investors was from cash infused by new investors.
Armstrong v. Collins , No. 01 Civ. 2437 (PAC), 2010 WL 1141158, at *22 (S.D.N.Y. Mar. 24, 2010), reconsideration denied , No. 01 Civ. 2437 (PAC), 2011 WL 308260 (S.D.N.Y. Jan. 31, 2011) ; accord…
2Cases cited27 opinions
- Sec. Investor Prot. Corp. v. Bernard L. Madoff Inv. Sec. LLCUnited States Bankruptcy Court, S.D. New York · 2018
- California Public Employees' Retirement System v. ANZ Securities, Inc.Supreme Court of the United States · 2017
- In re: Bernard L. Madoff Investment Securities LLCCourt of Appeals for the Second Circuit · 2014
- In re Motors Liquidation Co.District Court, S.D. Illinois · 2018
- Slatkin v. NeilsonCourt of Appeals for the Ninth Circuit · 2008
22 more not listed; retrieve them via the Exa API.
3Cited by137 opinions
- 45 John Lofts LLC v. MERIDIAN CAPITAL GROUP LLCUnited States Bankruptcy Court, S.D. New York · 2023
- Berman v. PavanoUnited States Bankruptcy Court, D. Connecticut · 2020
- Bernard L. Madoff Investment Securities LLC v. Lisa Beth Nissenbaum TrustDistrict Court, S.D. New York · 2021
- Bunnenberg v. Liberty Mutual Fire Insurance CompanyDistrict Court, N.D. New York · 2024
- In Re: Bernard L. Madoff Investment Securities LLCDistrict Court, S.D. New York · 2022
132 more not listed; retrieve them via the Exa API.