CNNMoney reports that a federal judge blocked Monday Bernie Madoff’s assets from being moved into bankruptcy, saying there is probable cause the assets should be forfeited to the government.
The order comes exactly one week after five investors filed papers in Federal Bankruptcy Court seeking $64 million in an effort to force the disgraced financier into involuntary bankruptcy.
Previously a different federal judge allowed investors to proceed with the filing, asserting that personal bankruptcy proceedings would be the best recourse for investors trying to recover their money. The SEC had been against the proposed bankruptcy action from day one saying that it would “lead to unnecessarily high administrative costs and confusion without any apparent benefits.” Sure, try tell that to those who lost their shirts.
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