Legal News

Weekend at Bernie?s: A Look at Key Madoff Lieutenant, and More . . .

By Dan Slater

It took a presidential inauguration to push the Bernie Madoff scandal from the front page. But now Bernie’s back in the news.

Prosecutors are investigating Frank DiPascali Jr., a key lieutenant who headed stock-options trading and was the point man for investment-advisory clients who were told he executed their trades. Now, The Journal reports, the Madoff point man is a potential point man for prosecutors in the investigation.

DiPascali, 52, hasn’t been charged with wrongdoing. His lawyer, Bracewell Giuliani’s Marc Mukasey, declined to comment to the WSJ about DiPascali’s role with Madoff except to say that he had frequent contact with investors.

Over at AmLaw Daily, you can find news of a January 16 decision by Manhattan Federal Judge Victor Marrero rejecting a request for an injunction freezing the fees paid to Madoff feeder fund Fairfield Greenwich Group. In its request for the asset freeze, reports AmLaw Daily, Pacific West Health Medical Center Inc. Employees Retirement System alleged that approximately $1 billion in fees was improperly paid to Fairfield affiliates and executives based on assets they invested with Madoff.

The defendants, repped by Simpson Thacher, called the request “outrageous.” In its brief, which you can find at AmLaw Daily, Simpson’s lawyers write: “Plaintiff’s attempt to seek redress for the Madoff fraud from defendants, who are themselves victims of the fraud, fails to even state a claim, much less demonstrate a likelihood of success on the merits as is required for the extraordinary relief plaintiff seeks.”

Robert Finkel of Wolf Popper told AmLaw Daily he was “disappointed” with Judge Marrero’s ruling, but said he had no plans to appeal.

Full post as published by Law Blog - WSJ.com on January 21, 2009 (boomark / email).