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Baker Hostetler Leads the Way on Complex Financial Issues

SIPA Trustee and Baker Hostetler bankruptcy partner Irving H. Picard oversees the liquidation proceeding of Bernard L. Madoff Investment Securities LLC in collaboration with his court-appointed Baker Hostetler counsel led by litigation partner David J. Sheehan. The Madoff Recovery Initiative is a challenging, multifaceted mission that requires thorough investigation of global banking practices, the feeder fund industry, and financial instruments, among countless other issues surrounding this complex financial fraud.

In the 38 months since their appointments, the SIPA Trustee and his Counsel have recovered or entered into agreements to recover more than $9 billion, representing more than 50 percent of the approximately $17.3 billion in principal estimated to have been lost in the Ponzi scheme by BLMIS customers who filed claims. These recoveries significantly exceed prior restitution efforts for Ponzi schemes, in terms of dollar value and percentage of stolen funds. As of February 15, 2012, pro rata distributions from the Customer Fund to BLMIS customers whose claims have been allowed by the SIPA Trustee totaled approximately $325.7 million.

Baker Hostetler was selected to help unravel the Madoff Ponzi scheme—the largest and most complex financial fraud case in U.S. history—based on our diverse experience in complex business litigation, bankruptcy law, white collar criminal investigations, and corporate finance. With a cross-practice, national team of attorneys focused on the case, this matter has Baker Hostetler leading the way on complex issues related to hedge funds, synthetic investment vehicles and the deconstruction of intricate financial structures, as well as innovative, challenging causes of action and jurisdictional topics.

The fees of Baker Hostetler and the SIPA Trustee, as well as other professionals retained by the SIPA Trustee, are paid by the Securities Investor Protection Corporation (SIPC), which is funded by the securities industry. All funds recovered by the Trustee and his teams are for the BLMIS Customer Fund and 100 percent of the Customer Fund will be ultimately be distributed pro rata to BLMIS customers with allowed claims.

For official information regarding the ongoing proceeding, please visit the Trustee’s website: www.madofftrustee.com.

Video of 60 Minutes interview