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 2020)

Memberships

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

News

News

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
  • New York
  • New Jersey

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
Financial Firms Launch New Crypto Products, NFTs Trending, Crypto Exchange Acquires Broker-Dealer, SEC, DOJ, IRS and CFTC Actions Target Crypto Actors
By Keith R. Murphy, Robert A. Musiala Jr., Veronica Reynolds, Jordan R. Silversmith, Joanna F. Wasick
April 2, 2021
In this issue: • US Institutional Financial Firms, and Fintech Startups, Launch Crypto Products • Creative NFT Launches and Bitcoin Giveaways Continue To Trend • US Crypto Exchange Acquires Broker Dealer, SEC Action Targets Token Sales •...
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Blockchain Monitor
US Firms Launch Bitcoin Products, Seek Approvals; Federal and State Agencies Take Enforcement Actions Against Cryptocurrency Industry Firms
By Keith R. Murphy, Joanna F. Wasick
March 19, 2021
In this issue: • US Firms Launch Bitcoin Products, Seek Approvals, Advocate for Crypto Rules • Multiple Federal and State Agencies Take Actions Against Crypto Industry Firms US Firms Launch Bitcoin Products, Seek Approvals, Advocate for...
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Blockchain Monitor
NFT Sales Launch, Fintech Firms Launch Crypto Initiatives, NY DFS Approves Crypto Firms, CFTC and IRS Target Crypto Crimes, DeFi Project Hacked
By Keith R. Murphy, Robert A. Musiala Jr., Veronica Reynolds, Joanna F. Wasick
March 12, 2021
In this issue: • NFTs Make Headlines, Global Payments Firm Launches Cryptocurrency Unit • Cryptocurrency Payment Options Expand Across the Globe • Cryptocurrency Firms Achieve NY DFS Approvals, IRS Launches Crypto Initiative • CFTC Action...
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Blockchain Monitor
Crypto Financial Products Announced, MIT Seeks to Improve Bitcoin Codebase, SEC Addresses Digital Assets, DeFi Hacks Continue, Crypto Theft Data Published
By Teresa Goody Guillén, Keith R. Murphy, Joanna F. Wasick
March 5, 2021
In this issue: • Crypto Firms Launch New Services, MIT Seeks to Improve Bitcoin Codebase • Institutional Cryptocurrency Investment Products Advance, New Data Published • SEC Focuses on Digital Assets, DeFi Hacked, Crypto Theft Data...
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Blockchain Monitor
Bahamas CBDC Prepaid Card, Ether Investment Products and Travel Rule Solutions Launch, Crypto Enforcement Settlements by OFAC and NYAG
By Keith R. Murphy, Veronica Reynolds, Jordan R. Silversmith, Joanna F. Wasick
February 26, 2021
In this issue: • Bahamas CBDC Integrates with Prepaid Card, Bitcoin Donation Data Published • Ether Investment Products Launch, New Publications Detail Crypto Adoption • Travel Rule Solutions Launch, DeFi Market Dissolves Following SEC...
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