Bloomberg News

Rakoff Takes Mets-Related Case to Review ‘Good Faith’ Issue

March 15, 2012

U.S. District Judge Jed Rakoff, who will oversee a trial of whether the New York Mets owners acted in “good faith” when they took $303 million from Bernard Madoff’s Ponzi scheme, said he will take another case to examine similar issues.

Maxam Capital Management LLC and founder Sandra Manzke were sued for $100 million in principal by Madoff trustee Irving Picard. Rakoff, who has about 280 Mets-related cases already, said he will remove the case from bankruptcy court to decide Picard’s rights and obligations under non-bankruptcy law, according to a court order filed in Manhattan yesterday.

The judge will determine whether Picard can nullify transfers owed by a brokerage to a customer, and what standard of proof the trustee must meet “in order to show that defendants did not receive transfers in good faith,” he said.

The Mets owners’ trial is set to start March 19 in Manhattan.

The Maxam case is Picard v. Maxam Absolute Return Fund LP, 11-cv-7428, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporters on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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