Blackney Discusses Second Circuit Ruling in Securities Investor Protection Corp. v. Bernard Madoff Inv. Sec.

In a case involving the efforts of a trustee appointed to recover funds transferred from Madoff Investment Securities LLC to foreign “feeder funds,” which then transferred those funds to other foreign persons or entities, the Second Circuit recently ruled that a specific section of the Bankruptcy Code does not apply extraterritorially to allow avoidance of fraudulent transfers that occur entirely outside of the United States. Ryan W. Blackney, a member of the Litigation Practice Group and the Fraud and Internal Investigations Team, writes about the decision in "Clawbacks Stop at the Shore: The Second Circuit Limits the Extraterritorial Application of a Bankruptcy Trustee’s Avoidance Powers." The article was published by the American Bankruptcy Institute (ABI) Commercial Fraud Committee on the ABI website. To read the article, click here.