• Embed Doc
  • Copy Link
  • Readcast
  • Collections
 
300016705
Baker & Hostetler LLP
45 Rockefeller Plaza New York, NY 10111Telephone: (212) 589-4200Facsimile: (212) 589-4201Irving H. PicardEmail: ipicard@bakerlaw.comDavid J. SheehanEmail:dsheehan@bakerlaw.com
 Attorneys for Irving H. Picard, Esq. Trustee for theSubstantively Consolidated SIPA Liquidation of  Bernard L. Madoff Investment Securities LLC  And Bernard L. Madoff 
UNITED STATES BANKRUPTCY COURTSOUTHERN DISTRICT OF NEW YORK 
SECURITIES INVESTOR PROTECTIONCORPORATION,Plaintiff-Applicant,v.BERNARD L. MADOFF INVESTMENTSECURITIES LLC,Defendant.Adv. Pro. No. 08-1789 (BRL)SIPA Liquidation(Substantively Consolidated)In re:BERNARD L. MADOFF,Debtor.
TRUSTEE’S FIRST INTERIM REPORT FOR THE PERIODDECEMBER 11, 2008 THROUGH JUNE 30, 2009
 
300016705
TABLE OF CONTENTS
I.INTRODUCTION...............................................................................................1II.BACKGROUND.................................................................................................2III.PROCEDURAL HISTORY.................................................................................5IV.LIQUIDATION PROCEEDING..........................................................................5V.ADMINISTRATION OF THE ESTATE..............................................................7A.RETENTION OF PROFESSIONALS............................................................7B.MARSHALLING AND LIQUIDATION OF ESTATE ASSETS...................8C.WIND-DOWN OF ESTATE OPERATIONS...............................................15VI.FINANCIAL CONDITION OF ESTATE..........................................................17VII.CLAIMS ADMINISTRATION..........................................................................18A.CUSTOMER CLAIMS................................................................................18B.CLAIMS OF GENERAL CREDITORS.......................................................26VIII.TRUSTEE INVESTIGATION...........................................................................26A.INTERNATIONAL PROCEEDINGS..........................................................27B.FEEDER FUNDS.........................................................................................30C.OTHERCORPORATE ASSETS.................................................................30D.EVIDENCE GATHERING..........................................................................31IX.BANKRUPTCY COURT PROCEEDINGS.......................................................32A.THIRD-PARTY ACTIONS AGAINST THE TRUSTEE.............................32B.THIRDPARTY ACTIONS BY THE TRUSTEE.........................................34C.SUBSTANTIVE CONSOLIDATION..........................................................41D.OBJECTIONS TO CLAIMSDETERMINATIONS.....................................42E.JOINT PROVISIONAL LIQUIDATORS.....................................................43F.MOTIONS TO INTERVENE.......................................................................43X.CONCLUSION..................................................................................................44
 
300016705
TO THE HONORABLE BURTON R. LIFLAND,UNITED STATES BANKRUPTCY JUDGE:Irving H. Picard, Esq. (the “Trustee”), as trustee for the substantively consolidatedliquidation proceeding of Bernard L. Madoff Investment Securities LLC (“BLMIS”) and BernardL. Madoff (“Madoff” and together with BLMIS, each a “Debtor” and collectively, the“Debtors”), respectfully submits his First Interim Report (this “Report”) pursuant to section78fff-1(c) of the Securities Investor Protection Act of 1970, 15 U.S.C. 78aaa etseq. (“SIPA”),
1
and in accordance with the terms of the Order on Application for an Entryofan Order Approving Form and Manner of Publication and Mailing of Notices, Specifying Procedures For Filing, Determination, and Adjudication of Claims; and Providing Other Relief entered onDecember 23, 2008 (the “Housekeeping Order” or “Claims Procedures Order”) (Docket No. 12).Pursuant to the Housekeeping Order, the Trustee shall file additional interim reports at leastevery six (6) months hereafter. This Report covers the period from December 15, 2008 throughJune 30, 2009 (the “Report Period”).I.
INTRODUCTION
1.Almost seven months have passed since the Trustee was appointed to liquidate theestate of the largest Ponzi scheme ever conducted. During this initial Report Period, the Trusteeand his professionals have made significant headway into the investigation of Madoff’s fraud.As of June 30, because of efforts made by Trustee and his professionals, over $1,088,507,818has been recovered for the estate. In addition, the Trustee has filed eight (8) avoidance actionsseeking to recover over $13.7 billion in funds from various feeders funds and related parties.2.During the Report Period, the Trustee initiated a claims process for all customersand creditors of BLMIS. As described in further detail below, within the Report Period the
1
For convenience, subsequent references to SIPA will omit “15 U.S.C. ____.”
of 00

Commenting has been disabled.