Keith R. Murphy

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.

Memberships

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

Pro Bono

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