Bloomberg News

Madoff Trustee, Firm Seek $45 Million Fees for Four Months

September 21, 2011

(Updates with litigation in third paragraph.)

Sept. 21 (Bloomberg) -- Irving Picard, who is liquidating con man Bernard L. Madoff’s money management firm, asked a judge today to grant him and his law firm $45 million in fees for the period Feb. 1 to May 31.

The Madoff trustee’s own charges for the four months are $599,301 in fees and $479.80 in expenses, according to a court filing today. His seventh request for payment would bring total fees for Picard and Baker & Hostetler LLP to more than $224 million since Madoff’s arrest in December 2008, according to court records.

Picard, who has filed 1,000 suits seeking $100 billion from banks such as HSBC Holdings Plc and JPMorgan Chase & Co., said in the fee application he expects to spend more time litigating in the future in the U.S. Supreme Court, the appeals court and district court, as well as bankruptcy court where he originally filed his suits.

He has appealed a July ruling by U.S. District Judge Jed Rakoff, who threw out almost $9 billion in damages that Picard demanded from HSBC and feeder funds. Of the $8.6 billion Picard has recovered for investors in the Ponzi scheme, about $5.3 billion is tied up in court challenges and other “unresolved issues,” said Amanda Remus, a Picard spokeswoman, in an e-mail.

Burden of Litigation

By contrast, bankrupt Lehman Brothers Holdings Inc. today dropped its bid to keep fighting in court for $11 billion from Barclays Plc, citing the burden of litigation on the estate and the need to conclude the bankruptcy.

Rakoff challenged Picard’s fees in a court hearing about the trustee’s $59 billion suit against defendants including Sonja Kohn and UniCredit SpA.

“I just keep reading in the papers how much is being paid to Picard,” Rakoff said.

The trustee’s fees are paid by the Securities Investor Protection Corp., which is funded by the securities industry, Remus said.

The main case is Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, 08-ap-1789, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--Editors: John Pickering

To contact the reporter on this story: Linda Sandler in New York at

To contact the editor responsible for this story: John Pickering at

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