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

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
Crypto Initiatives Announced in Exchanges, ETFs, Payments; NFT Initiatives Continue; Bitcoin Mining Difficulty Adjusts; Global Enforcement Actions Continue
By Teresa Goody Guillén, Keith R. Murphy, Veronica Reynolds, Jordan R. Silversmith
July 16, 2021
In this issue: • Cryptocurrency Exchanges, ETFs and Payment Initiatives Announced • Hollywood, Paradise and Banking: NFT Use Cases Continue to Expand • Bitcoin Network Mining Difficulty Adjusts in Wake of China Crackdown • DOJ, CFTC and...
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Blockchain Monitor
USDC Expands to New Blockchains, NFT Sales Continue, FATF Publishes Review of Crypto Standards, US and Global Crypto Enforcement Actions Continue
By Keith R. Murphy, Robert A. Musiala Jr., Jordan R. Silversmith, Kayley B. Sullivan, Joanna F. Wasick
July 9, 2021
In this issue: • USDC Expands to 10 New Blockchains, Crypto Payment Initiatives Launch • NFT Sales Continue Across Sports and Art Markets • FATF Issues Review of Crypto Standards Amid Regulatory News in US and UK • Major Crypto Exchange...
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Blockchain Monitor
Reports Address CBDCs, Security Tokens; NFT Sales Continue; Blockchain Initiatives Announced; Regulators Address Crypto; SEC Targets ICO Fraud
By Teresa Goody Guillén, Keith R. Murphy, Veronica Reynolds, Jordan R. Silversmith
June 18, 2021
In this issue: • Reports Address CBDCs and Security Tokens, Banks Launch Crypto Initiatives • NFT Sales Continue at Auction House, US Space Force and News Organization • Blockchain Initiatives Announced in Food, Automotive and IP Sectors •...
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Blockchain Monitor
Crypto Investment and Payment Products Launch, BiTA Platform Announced, SEC and OFAC Take Crypto Enforcement Actions, FCA Extends AML Exemption
By Keith R. Murphy, Veronica Reynolds, Jordan R. Silversmith
June 4, 2021
In this issue: • Crypto Investment and Payments Products Launch, Payment Data Published • Acquisition Targets ‘Smart Agreements’ Tech, BiTA Platform Launched • SEC and OFAC Take Crypto Enforcement Actions, FCA Extends AML Exemption Crypto...
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Blockchain Monitor
Reports Analyze Bitcoin Price, Energy Consumption; SEC Petitioned on NFTs, NFT Platform Sued; FDIC and FATF Focus on Crypto; Hacks and Fraud Continue
By Teresa Goody Guillén, Keith R. Murphy, Veronica Reynolds, Jordan R. Silversmith, Joanna F. Wasick
May 21, 2021
In this issue: • Reports Analyze Bitcoin Price Crash and Network Energy Consumption • SEC Petitioned on NFTs, NFT Platform Sued in Class Action as More NFTs Launch • FDIC Seeks Info on Crypto, FATF Focuses on DeFi, Payment Solutions...
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