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Stern v. Marshall Decision May Prevent Madoff’s Victims From Recovering

By Gerry W. Beyer

Bernie Madoff

A federal judge is about determine whether the victims of the Bernie Madoff investment scandal will be able to seek legal remedy. The court must decide whether the decision in Stern v. Marshall prevents the victims of the Bernie Madoff investment scandal from bringing suit against those who may have improperly benefited from Madoff’s investment scheme.

The Supreme Court in Stern v. Marshall limited the power of federal bankruptcy courts, a non-Article III Court, from reviewing the decisions of state courts. In Marshall, the court dealt with a state compulsory counterclaim. In March of 2009, Madoff plead guilty to investment fraud. He is currently serving a 150 year sentence.

See Thomas Reuters, Anna Nicole’s Madoff Booby Trap, New York Post, Apr. 14, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.