Keith R. Murphy

Partner

New York
T +1.212.589.4686
F +1.212.589.4201

Overview

Keith Murphy is a client-focused partner concentrating in corporate reorganization, bankruptcy, litigation, fiduciary representations and creditors' rights, including representations of creditors in the aerospace industry. Keith also has significant experience representing trustees in brokerage house liquidation proceedings commenced by the Securities Investor Protection Corporation, and representing court-appointed receivers in investment fraud proceedings initiated by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC). Keith's representation of clients across other industries, including manufacturing, retail, aerospace, steel and health care, provide him with the background and experience needed to address complex commercial and litigation issues.

Select Experience

  • A lead attorney on the global team representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC and the consolidated estate of Bernard L. Madoff in connection with Madoff's multi-billion dollar Ponzi scheme. Working with the litigation and investigation teams, Keith is pursuing hundreds of avoidance actions seeking to recover assets from banks, feeder funds and others for the benefit of defrauded customers and the estate.
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Experience

  • A lead attorney on the global team representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC and the consolidated estate of Bernard L. Madoff in connection with Madoff's multi-billion dollar Ponzi scheme. Working with the litigation and investigation teams, Keith is pursuing hundreds of avoidance actions seeking to recover assets from banks, feeder funds and others for the benefit of defrauded customers and the estate. In connection with his role, he has been involved in the litigation and outcome leading to many reported decisions, including: 
  • Fox v. Picard (In re Bernard L. Madoff), 848 F. Supp. 2d 469 (S.D.N.Y. 2012)
    • Picard v. Picower, Adv. Pro. No. 09-1197, ECF No. 43 (Bankr. S.D.N.Y. Jan. 13, 2011)
    • Picard v. Fox, 429 B.R. 423 (Bankr. S.D.N.Y. 2010)

    Obtained approval of a $7.2 Billion settlement with the estate of Jeffry Picower and the issuance of a permanent injunction by the Bankruptcy Court in connection therewith.  On appeal, the District Court affirmed the approval of the settlement.  The District Court also affirmed the finding that certain creditors’ lawsuits were duplicative and derivative and therefore void, and affirmed the issuance of the permanent injunction.  The matter is on appeal and fully argued before the Second Circuit Court of Appeals.
    Lautenberg Found. v. Picard (In re Bernard L. Madoff Inv. Secs., LLC), No. 11-5421, 2013 WL 616269 (2d Cir. Feb. 20, 2013)
    In re Bernard L. Madoff Inv. Securities, LLC, No. 11-CV-2135, 2011 WL 7981599 (S.D.N.Y. Dec. 05, 2011)
    Picard v. Stahl, 443 B.R. 295 (Bankr. S.D.N.Y. 2011)
    Successfully thwarted third-party actions against Madoff family defendants which threatened to interfere with the SIPA Trustee’s litigation and recovery efforts.  Following litigation, the Trustee obtained extension of the automatic stay to third party actions and issuance and affirmance of preliminary injunctions from the Bankruptcy Court and District Court.  In 2013, the Second Circuit Court of Appeals issued a summary order affirming the Bankruptcy Court’s ruling in favor of the Trustee under section 105(a) of the Bankruptcy Code.
  • Picard v. Maxam Absolute Return Fund, L.P., 474 B.R. 76 (S.D.N.Y. 2012)
    Picard v. Maxam Absolute Return Fund, L.P., 460 B.R. 106 (Bankr. S.D.N.Y. 2011)
    Successfully defended against an action filed against the Trustee in the Cayman Islands by obtaining rulings affirming the extraterritorial reach of the automatic stay and obtaining an injunction against the moving parties from the Bankruptcy Court, which was affirmed by the District Court. Prior to a decision by the Second Circuit Court of Appeals, the Trustee obtained a settlement of his litigation for $97.8 Million.
Additional Experience
  • Represented a Chapter 11 debtor of a building product manufacturing corporation in its successful reorganization.
  • Represented lessors and secured creditors in the Avianca, Varig and TWA airline bankruptcy cases.
  • Represented the CFTC receiver for IATrading.com Inc. involving the liquidation of a fraudulent investment adviser. 
  • Represented the SEC receiver for Northshore Asset Management LLC involving the liquidation of a failed investment group and funds due to fraud.
  • Represented the SEC receiver for Sagam Corp. involving the liquidation of a fraudulent investment adviser.
  • Represented the bank agent for the lender group in Opal Concepts Inc.
  • Represented the Chapter 11 debtors in the Integrated Health Services Inc. and Caldor Corp. bankruptcy cases.

Recognitions and Memberships

Recognitions

  • New York Metro "Super Lawyer" (2013 to 2021)

Memberships

  • American Bankruptcy Institute
  • American Bar Association
  • New York State Bar Association
  • St. John's University School of Law Alumni Association

News

News

Blog Posts

Pro Bono

  • Successfully represented a school child with behavioral issues in a case seeking funding for specialized school tuition.

Prior Positions

  • Kaye Scholer LLP: Bankruptcy Department
  • Winick & Rich, P.C.: Bankruptcy Department
  • Clerk for the Honorable Stephen D. Gerling, Chief Judge for the United States Bankruptcy Court, Northern District of New York

Admissions

  • U.S. Court of Appeals, Second Circuit
  • U.S. District Court, Southern District of New York
  • U.S. District Court, Eastern District of New York
  • U.S. District Court, Northern District of New York
  • Connecticut
  • New Jersey
  • New York

Education

  • J.D., St. John’s University School of Law, 1996, Editor, American Bankruptcy Institute Law Review
  • B.A., State University of New York at Albany, 1991

Blog

In The Blogs

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Blockchain Monitor
Banks and Retailers Embrace Crypto, Bitcoin Environmental Costs Debated, New NFT Initiatives Launch, Various Agencies Address Crypto, DeFi Hacks Continue
By Teresa Goody Guillén, Maria S. Luevano, Keith R. Murphy, Robert A. Musiala Jr., Joanna F. Wasick
May 6, 2022
In this issue: • Banks and Retailers Venture Further into Cryptocurrencies and Blockchain• Congress Spars with Industry on Environmental Impact of Bitcoin Mining• New NFT Offerings Revealed by Entertainment, Social and Crypto Companies•...
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Blockchain Monitor
Banks Expand Digital Asset Offerings; Crypto Market Actors Critique SEC Proposal; New OFAC Crypto Sanctions; Agencies Issue Warnings; DeFi Hacked
By Christina O. Gotsis, Keith R. Murphy, Robert A. Musiala Jr., Joanna F. Wasick
April 22, 2022
In this issue: • Banks Expand Digital Asset Offerings, BIS Report Addresses CBDCs• Cryptocurrency Market Actors Publish Critiques of Recent SEC Proposal• OFAC Sanctions North Korean Crypto Hackers and Russian Crypto Miner• Law Enforcement...
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Blockchain Monitor
New Crypto Payment Initiatives; Regulators Address Crypto in Speeches; Lawmakers Propose Legislation; OFAC Sanctions Crypto Actors; DeFi Hacked 
By Teresa Goody Guillén, Keith R. Murphy, Robert A. Musiala Jr., Veronica Reynolds, Jordan R. Silversmith, Joanna F. Wasick
April 8, 2022
In this issue: • Crypto Payment Initiatives Announced in Stablecoins, Lightning Network, Mining• SEC Chairman and Comptroller of the Currency Address Crypto in Speeches• SEC Addresses Crypto Accounting, Commissioner Peirce Voices...
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Blockchain Monitor
Executive Order Addresses Digital Assets; Banks and Restaurants Launch Crypto Initiatives; FinCEN Issues Alert; SEC, CFTC and DOJ Bring Actions
By Lauren Bass, Keith R. Murphy, Robert A. Musiala Jr., Veronica Reynolds, Joanna F. Wasick
March 11, 2022
In this issue: President Biden Issues Executive Order Addressing Digital Assets Banks Join USDF ‘Stablecoin’ Consortium, Pursue Crypto Custody Offerings U.S. Restaurants Adopt Crypto; Swiss City Calls Crypto ‘De Facto’ Legal Tender...
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Blockchain Monitor
Financial Firms Continue Expanding into Cryptocurrency Markets; Crypto Donations Reach Ukraine; DOJ Crypto Enforcement Continues; SEC Probes NFTs
By Teresa Goody Guillén, Keith R. Murphy, Robert A. Musiala Jr.
March 4, 2022
In this issue: Traditional Financial Firms Expand Reach into Cryptocurrency Sphere Cryptocurrency Donations Pour In to Fund Ukrainian Government and Charities DOJ Secures Guilty Pleas and Charges Alleged Ponzi Scheme; SEC Launches NFT...
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