Legal News

Fees for Madoff trustee's law firm top $50 million

By (Breaking Legal News)

A law firm employing the trustee winding down Bernard Madoff's investment firm has won court approval to be paid $20.3 million of additional fees, pushing its total to $50.9 million for 13-1/2 months of work.

In an order made public on Thursday, U.S. Bankruptcy Judge Burton Lifland in Manhattan authorized the additional payment to Baker & Hostetler LLP, plus reimbursement of $390,200 of expenses, covering the Oct. 1, 2009 to Jan. 31, 2010 period.

Baker & Hostetler has been awarded $59.8 million of fees overall, but is deferring 15 percent, or $9 million, until the liquidation of Bernard L. Madoff Investment Securities LLC is complete, court records show.

Irving Picard, the court-appointed trustee and a Baker & Hostetler partner, has been trying to recover assets for victims of Madoff and his estimated $65 billion Ponzi scheme. He has separately been awarded $1.93 million in fees.

Lifland's order came over the objections of some Madoff victims. They believe Picard either undervalues some claims, allows claims to be paid too slowly, or has a conflict of interest because he also represents the interests of the Securities Investor Protection Corp against the victims.

Full post as published by Breaking Legal News on May 07, 2010 (boomark / email).