"The Lasting Shadow of Bernie Madoff," by Diana Henriques, appeared in The New York Times on December 10, 2011, and highlighted the work of SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC, Irving H. Picard, his Chief Counsel, David J. Sheehan, and the entire legal team working on the fallout from the Madoff Ponzi scheme over the past three years. The article was a feature marking the third anniversary of the bankruptcy filing and Bernard L. Madoff's arrest on December 11, 2008.
According to the article, case successes to date include the United States Bankruptcy Court for the Southern District of New York's approval of a $5 billion settlement with the estate of Jeffry Picower, a longtime Wall Street investor who had profited enormously from his Madoff accounts. Subject to appellate review, the Customer Fund for BLMIS customers with allowed claims will receive $5 billion from the Picower settlement while the United States government will receive $2.2 billion in forfeiture. The feature also analyzed the important decision from the United States Second Circuit Court of Appeals upholding the United States Bankruptcy Court's earlier decision that the Trustee's formula for determining net equity is the most fair and equitable approach for BLMIS customers with allowed claims.
Among Picard and Sheehan’s priorities for 2012, the article says, is a successful appeal of lower court rulings that could reduce the total recoveries sought through litigation and settlements by approximately $11 billion. Those rulings, the article points out, could potentially rewrite the bankruptcy laws that govern the nearly 1,000 lawsuits filed by Baker Hostetler Counsel on behalf of the SIPA Trustee.