Monday, April 13, 2009

Madoff Investors Force Involuntary Bankruptcy

Madoff investors filed an involuntary bankruptcy petition against the convicted money manager to ensure that all of his assets are used to pay victims of his $65 billion Ponzi scheme.

The petition, filed by five investors today in U.S. Bankruptcy Court in Manhattan, seeks to push Madoff into Chapter 7 bankruptcy. It was filed by attorneys for the investors: Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno and Steven Morganstern. They said they hold $64 million in claims against Madoff, who pleaded guilty last month to directing the largest Ponzi scheme in U.S. history.

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