The Jewish Association for Services for the Aged in New York City is being sued by the liquidator for Bernard L. Madoff’s trust, claiming that the company accepted $5.2 million in fictitious profit that they received from Madoff’s Ponzi scheme over a six year period.
Fund trustee Irving Picard is no stranger to suing company’s in order to collect money received from the Ponzi scheme, in September he sued the owners of the New York Mets to claim back $1 billion. Judge Jed Rakoff in the Mets lawsuit cut that sum by two-thirds, claiming that he could only take back money received in the last two years.
In the Jewish Association lawsuit filed in U.S. Bankruptcy Court in New York Picard claims that the trust is entitled to six years of transfers under bankruptcy and New York Law.
In his complaint Picard argued:
“The trustee is entitled to a judgment against defendant avoiding and preserving the six year transfers.”
In the meantime association president David Warren has not commented on the case or the money transfers at this time.
More information about the filing can be found in the case: Picard v. Jewish Association, 11-ap-02773, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
Do you think associations such as the one listed in this article should be forced to pay back money they may not have known was from illegal sources?