This first episode focuses on the first days after the shocking discovery that the Madoff multi-billion-dollar investment enterprise was a complete fraud.  Unlike most Ponzi schemes, there were actually no investments at all in what on paper appeared to be a massive investment fund.   Our guest, attorney David Sheehan of Baker & Hostetler LLP, is retained along with Irving Picard to begin the process of an orderly liquidation of the Bernard L. Madoff Investment Securities LLC.  The enormity of the case is unveiled as David and his team learn that $64 billion in supposed investments have in fact never existed despite years of reports to investors that the funds were returning up to 17% profits annually.  

Bad Boys of Bankruptcy: The Madoff Files: The Scheme Is Uncovered: “We Are Gonna Need a Bigger Boat”

In episode two we hear about the extraordinary coordination of the Baker Hostetler team with federal, state and international investigators, including those from the FBI, the SEC, the United States attorney and other law enforcement agencies.  Attorneys David Sheehan and Camille Bent are back to discuss how the criminal investigation proceeded hand in hand with the complex work of collecting assets to return a dividend to the thousands of investors that lost billions to the Madoff scheme.  In addition to Madoff, several people associated were charged, convicted and sentenced to prison for their roles in this massive fake investment business.

Bad Boys of Bankruptcy: The Madoff Files: The Clean Up Begins: Coordination Like Never Before

In episode three we turn to the cutting-edge legal issues legal issues of law that were raised in the Madoff case.  Because it presented circumstances unlike any that had come before it, the Madoff case required the legal team to develop a new legal playbook. In this episode David Sheehan and Camille Bent of the Baker Hostetler team offer a tutorial on the new precedents established in the case that will provide a game plan for those that are charged with managing recovery after massive Ponzi schemes and will benefit victims of such cases. The most significant of these legal victories is court acceptance of the use of a net equity approach to fairly determine the claim amounts of investors in what has become known as a “net winners/net losers” game plan.

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