Seyfarth Shaw Madoff Team Client Alert Cited in the ABA Journal
"Some Madoff Investors Seek U.S. Bailout; 'Clawback' Defenses"

A client alert produced by the Seyfarth Shaw Madoff Team was cited in the February 10, 2009 online issue of the ABA Journal in the article, "Some Madoff Investors Seek U.S. Bailout; 'Clawback' Defenses." The article discussed how many wealthy investors who invested in Bernard Madoff's $50 billion Ponzi scheme may have lost virtually all their money. The fortunate few Madoff investors who withdrew money before the news of the situation struck are now concerned about potential "clawbacks" by a trustee overseeing the liquidation of the Bernard Madoff investment firms. However, according to the Seyfarth client alert, there are significant defenses for those who acted in good faith. "The good faith defense may well provide a measure of protection to entities that successfully obtained redemptions from Madoff Securities, particularly where some very sophisticated institutional investors, as well as the SEC, did not detect Madoff’s alleged fraud," the Madoff Team explained in their client alert. "Whether those entities should have, or even could have, detected the fraud is another issue that is likely to spawn considerable litigation."