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Lawyers Come Out On Top in Madoff Case

published April 02, 2011

By CEO and Founder - BCG Attorney Search left
Published By
( 5 votes, average: 3.8 out of 5)
What do you think about this article? Rate it using the stars above and let us know what you think in the comments below.
While thousands of people were defrauded out of the their savings, some of them losing most of what they had, the legal sector will now see a windfall of business from the money that has been recovered since Madoff was sentenced to 150 years in prison back in 2009.

According to the ABA Journal, taxpayers in the United States will end up paying out over $1 billion in fees to both accountants and lawyers working on deconstructing the Madoff estate.

Various sources are reporting that lawyers for Irving Picard, a designated trustee of the estate, have been paid up to $742 an hour. One firm, Baker & Hostetler, had already raked in $130 million by the end of last year.

According to Reuters, the trustees are spending and charging so much money to recover the funds, they may completely deplete the $2.5 billion Securities Investor Protection Corp. fund.

The SIPC is a non-profit organization whose mission is to protect investors from fraud and insolvency. The organization is in charge of managing the liquidation of the Madoff estate.

The SIPC came under scrutiny after a suit was filed against Irving Picard, who serves as the SIPC's Bankruptcy Trustee. The suit, which was filed by Maureen Ebel Roger and Diane Peskin, claimed that Picard was in breach of his fiduciary duty as he did not follow the rules that were set for paying out the Madoff victims.

Picard won that suit last month when Judge Burton Lifland, a Federal Bankruptcy Court judge, ruled in his favor. According to Picard, those investors who invested more money than they took out would be first in line to receive compensation from the recovered funds. Those who received net gains would not see a payout until that difference was entirely paid out.

Alternative Summary

Harrison is the founder of BCG Attorney Search and several companies in the legal employment space that collectively gets thousands of attorneys jobs each year. Harrison’s writings about attorney careers and placement attract millions of reads each year. Harrison is widely considered the most successful recruiter in the United States and personally places multiple attorneys most weeks. His articles on legal search and placement are read by attorneys, law students and others millions of times per year.

More about Harrison

About LawCrossing

LawCrossing has received tens of thousands of attorneys jobs and has been the leading legal job board in the United States for almost two decades. LawCrossing helps attorneys dramatically improve their careers by locating every legal job opening in the market. Unlike other job sites, LawCrossing consolidates every job in the legal market and posts jobs regardless of whether or not an employer is paying. LawCrossing takes your legal career seriously and understands the legal profession. For more information, please visit www.LawCrossing.com.

published April 02, 2011

By CEO and Founder - BCG Attorney Search left
( 5 votes, average: 3.8 out of 5)
What do you think about this article? Rate it using the stars above and let us know what you think in the comments below.