Bloomberg News

Madoff Trustee Picard Seeks Fees to Bring Total to $273 Million

February 24, 2012

Feb. 18 (Bloomberg) -- Irving Picard, the trustee liquidating Bernard L. Madoff’s money management firm, sought court approval of a payment that would bring total fees for him and his law firm to about $273 million since the con man’s 2008 arrest.

Picard and Baker & Hostetler LLP asked a judge to grant them $48 million in fees and $1.2 million in expenses for the four months through Sept. 30, making their eighth fee request in a filing yesterday in U.S. Bankruptcy Court in Manhattan. About 10 percent of the payments are deferred.

Picard, who filed 1,000 suits seeking $100 billion from banks such as HSBC Holdings Plc and JPMorgan Chase & Co., appealed judges’ rulings in those two cases and others on Feb. 16 that had tossed about $30 billion of his claims.

Recoveries for Madoff customers have climbed to about $9 billion, including amounts that parties have agreed to pay the estate, Picard said in the filing. About $6.4 billion isn’t available for distribution because it is tied up in court challenges or being held in reserve, according to the trustee’s website.

U.S. District Judge Jed Rakoff, who tossed about $9 billion of damages demanded by Picard from HSBC and feeder funds, challenged Picard’s fees in a court hearing about the trustee’s $59 billion suit against defendants including UniCredit SpA and Sonja Kohn, the founder of Bank Medici AG.

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

Amanda Remus, a Picard spokeswoman, didn’t immediately respond to an e-mail seeking comment yesterday on the trustee’s fees, which are paid by the Securities Investor Protection Corp. that hired him to liquidate the Madoff brokerage.

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: Mary Romano, Glenn Holdcraft

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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