Federal Judge Louis Stanton of New York in Manhattan, ruled today (Friday) in favor of victims of Bernard Madoff allowing them to force the disgraced financier into personal bankruptcy.
The Securities and Exchange Commission had said there are few assets of Madoff that didn’t come from fraud. But despite objections from federal prosecutors, the SEC and the Trustee for the Liquidation of B. L Madoff Investment Securities LLC, judge Stanton ruled that the alleged victims may go after Madoff’s assets that were not proceeds from his crimes.
Today’s ruling came after a small group of investors had requested the court’s permission last week to directly pursue Madoff’s personal assets in bankruptcy court.
Bernie Madoff and his wife, Ruth declared in a statement filed with the SEC last year that they had more than $800 million in assets.