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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
SECURITIES INVESTOR PROTECTION
CORPORATION,
Adv. Pro. No. 08-01789 (BRL)
Plaintiff-Applicant,
SIPA Liquidation
v.
(Substantively Consolidated)
BERNARD L. MADOFF INVESTMENT
SECURITIES LLC,
12 Civ. 1039 (DLC)
Defendant.
12 Civ. 1139 (DLC)
In re:
BERNARD L. MADOFF,
Debtor.
SUR-REPLY OF THE
SECURITIES INVESTOR PROTECTION CORPORATION
IN SUPPORT OF TRUSTEE’S MOTION FOR AN ORDER AFFIRMING TRUSTEE’S
DETERMINATIONS DENYING CLAIMS OVER ERISA-RELATED OBJECTIONS
SECURITIES INVESTOR
PROTECTION CORPORATION
805 Fifteenth Street, N.W., Suite 800
Washington, D.C. 20005
Telephone: (202) 371-8300
JOSEPHINE WANG
General Counsel
KEVIN H. BELL
Senior Associate General Counsel
For Dispute Resolution
CHRISTOPHER H. LAROSA
Senior Associate General Counsel –
Litigation
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TABLE OF CONTENTS
PAGE
TABLE OF AUTHORITIES ......................................................................................................... ii
ARGUMENT ...................................................................................................................................1
A.
Ownership is an indispensable prerequisite to “customer” status ...........................3
B.
The claimants here did not own any of the assets entrusted to BLMIS ...................5
C.
1.
The plan assets rule does not preempt state trust and LLC law ...................6
2.
The ERISA Plan Claimants have no contractual interest
in the property entrusted to BLMIS ...........................................................10
3.
J.X. Reynolds had no property interest
sufficient for “customer” status .................................................................12
The claimants’ remaining arguments revisit issues already decided .....................13
CONCLUSION ..............................................................................................................................14
CERTIFICATE OF SERVICE ......................................................................................................15
i
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TABLE OF AUTHORITIES
CASES:
PAGE
Aozora Bank Ltd.v. Sec. Investor Prot. Corp.
(In re Bernard L. Madoff Inv. Secs. LLC),
2012 WL 28468 (S.D.N.Y. Jan. 4, 2012) ..................................................................2, 3, 13
Bank of New York v. Janowick, 470 F.3d 264 (6th Cir. 2006),
cert. den. sub nom., Southwire Co. v. Janowick, 552 U.S. 825 (2007) ...............................7
Brown v. Astro Holdings, Inc., 385 F.Supp.2d 519 (E.D. Pa. 2005) .......................................... 6-7
In re Brunswick Hosp. Center, Inc., 156 B.R. 896 (E.D.N.Y. 1993) ..............................................6
Canario v. Lidelco, Inc., 782 F. Supp. 749 (E.D.N.Y. 1992) ..........................................................7
Central States, Southeast and Southwest Areas Pension Fund v. Central Transport, Inc.,
472 U.S. 559 (1985) ...........................................................................................................11
DeBreceni v. Graf Bros. Leasing, Inc., 828 F.2d 877 (1st Cir. 1987),
cert. den. sub nom., New England Teamsters and
Trucking Industry Pension Fund v. Graf, 484 U.S. 1064 (1988).........................................6
Hattem v. Schwarzenegger, 449 F.3d 423 (2d Cir. 2006) ........................................................... 8-9
Jackson v. United States, 555 U.S. 1163 (2009) ..............................................................................8
LaRue v. DeWolff, Boberg & Associates, Inc., 552 U.S. 248 (2008) .....................................3, 4, 5
La Russo v. Paladino, 109 N.Y.S.2d 627 (N.Y. Sup. Ct. 1951),
aff’d, 116 N.Y.S.2d 617 (N.Y. App. Div 1952) ................................................................12
Milgram v. Orthopedic Associates Defined Contribution Pension Plan,
666 F.3d 68 (2d Cir. 2011)...........................................................................................3, 4, 5
Matter of Minton Group, Inc., 46 B.R. 222 (Bankr. S.D.N.Y. 1985) ............................................12
In re New Times Secs. Servs., Inc., 463 F.3d 125 (2d Cir. 2006) ...............................................3, 5
Sec. Investor Prot. Corp. v. Bernard L. Madoff Inv. Secs. LLC,
454 B.R. 285 (Bankr. S.D.N.Y. 2011), aff’d sub nom.,
In re Aozora Bank Ltd., 2012 WL 28468 (S.D.N.Y. Jan. 4, 2012) ...........................2, 3, 13
Secretary of Labor v. Doyle, 675 F.3d 187 (3d Cir. 2012) ..........................................................7, 8
ii
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TABLE OF AUTHORITIES
(cont.)
CASES:
PAGE
SIPC v. Morgan Kennedy, Inc., 533 F.2d 1314 (2d Cir.), cert. den. sub nom.,
Trustees of the Reading Body Works, Inc. v. Sec. Investor Prot. Corp.,
426 U.S. 936 (1976) .......................................................................................................3, 13
In re Suprema Specialties, Inc., 370 B.R. 517 (S.D.N.Y. 2007)
aff’d, 309 Fed. Appx. 526 (2d Cir. 2009) ......................................................................6, 11
Matter of Weis Secs., Inc., 1977 WL 1043 (S.D.N.Y. Sept. 29, 1977) .........................................13
STATUTES AND RULES:
Employee Retirement Income Security Act of 1974, 29 U.S.C. '
1002..............................................................................................................................................6, 9
1056(d)(1) ........................................................................................................................................4
1103(a) .......................................................................................................................................3, 11
1144(d) ...................................................................................................................................5, 9, 10
N.Y. Ltd. Liab. Co. Law §
601..............................................................................................................................................6, 11
N.Y. P’ship Law §
51(1) ...............................................................................................................................................12
51(2)(a) ..........................................................................................................................................12
51(2)(b) ..........................................................................................................................................12
OTHER AUTHORITIES:
Austin Wakeman Scott, 2A The Law of Trusts § 265.4 (4th ed 1988) ..........................................11
iii
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The Securities Investor Protection Corporation (“SIPC”) submits this sur-reply in support
of the motion (“Motion”) of Irving H. Picard, as trustee for the substantively consolidated
liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS” or “Debtor”), under the
Securities Investor Protection Act (“SIPA”), 15 U.S.C. §§ 78aaa et seq., and of Bernard L.
Madoff (“Madoff”), for an order affirming his denial of the claims of certain claimants who
purport to be “customers” under SIPA based on provisions of the Employee Retirement Income
Security Act of 1974 (“ERISA”), 29 U.S.C. §§ 1001, et seq., and related Department of Labor
(“DOL”) regulations.
ARGUMENT
The responses to the Trustee’s Motion reflect a number of common assertions, including
that: (1) the entrustment of property by a claimant to a liquidating SIPC-member is the key to
eligibility for “customer” status; (2) ERISA deems the claimants to have engaged in such
entrustment, notwithstanding their lack of any account or comparable relationship with BLMIS;
and (3) a claimant need not have had an account in its name at a liquidating SIPC-member to
qualify for “customer” status under SIPA. The responding claimants differ, however, in their
approach to the second point. The Participant Claimants1 acknowledge that they lacked legal
title to any assets entrusted to BLMIS, but insist instead that a claimant can be deemed to have
entrusted assets to a liquidating SIPC-member even though the claimant lacks title, or any other
cognizable interest, in such assets. In contrast, the Plan Claimants, particularly the self-styled
“ERISA Plan Claimants” - a group of 37 employee benefit plans that purchased interests in
either Income Plus one or more of three BLMIS feeder funds - acknowledge that ownership is a
prerequisite to entrustment, but contend that, by virtue of ERISA’s “plan assets rule” and the
1
The abbreviations used in this memorandum are identical to those used in SIPC’s opening
memorandum.
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references to the same in the prospectuses and other offering material issued in connection with
the interests that they purchased, they owned the assets entrusted to BLMIS by Income Plus
and/or the feeder funds.
For the reasons discussed below, both groups of claimants are mistaken. Ownership is an
indispensable prerequisite to entrustment, and a claimant cannot entrust to a SIPC-member assets
that the claimant does not own. More broadly, a claimant cannot qualify as a “customer” under
SIPA with respect to assets in which the claimant has no legally cognizable property interest.
Further, ERISA’s “plan assets rule” is of no help to the ERISA Plan Claimants because it does
preempt otherwise applicable state trust and limited liability company (“LLC”) law that provides
that trust beneficiaries and LLC owners like the ERISA Plan Claimants do not hold title to trust
and LLC assets, respectively. Likewise, the references to the “plan assets rule” in the offering
memoranda cited by the ERISA Plan Claimants avail them nothing. As the full context of these
memoranda makes clear, those references were not intended to displace otherwise applicable
state law depriving the ERISA Plan Claimants of any interest in trust and LLC assets outside the
context of Title I of ERISA.
Finally, the claimants’ insistence that they need not have had accounts at BLMIS reflects
an effort to relitigate an argument that this Court and the District Court considered and rejected
in Sec. Investor Prot. Corp. v. Bernard L. Madoff Inv. Secs. LLC, 454 B.R. 285 (Bankr.
S.D.N.Y. 2011) (“BLMIS”), and Aozora Bank v. Sec. Investor Prot. Corp. (In re Bernard L.
Madoff Inv. Secs. LLC), 2012 WL 28468 (S.D.N.Y. Jan. 4, 2012) (“Aozora”), respectively. The
claimants here add nothing to the argument made in those cases, and there is no reason to revisit
the Court’s earlier rejection of that argument.
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A. Ownership is an indispensable prerequisite to “customer” status
As the Second Circuit stated, and as all of the claimants acknowledge, “the critical aspect
of the ‘customer’ definition is the entrustment of cash or securities to the broker-dealer for the
purposes of trading securities.” In re New Times Secs. Servs., Inc., 463 F.3d 125, 128 (2d Cir.
2006). See also Aozora, 2012 WL 28468, at * 9. An investor cannot legally decide to entrust to
a broker-dealer cash or securities that the investor does not own and in which it has no other
cognizable property right, however. Indeed, this Court, among others, has recognized legal
ownership of cash or securities held, or purportedly held, by a broker-dealer as a “foundational
element” of “customer” status under SIPA; an indispensable prerequisite which a claimant must
satisfy in order to have a colorable “customer” claim under SIPA. See BLMIS, 454 B.R. at 295,
299. See also SIPC v. Morgan, Kennedy & Co., 533 F.2d 1314, 1318 (2d Cir. 1976); Aozora,
2012 WL 28468 at ** 9-10.
As noted, the ERISA Plan Claimants themselves expressly
acknowledge this principle. (See ECF 4746 at 9-10.)
The Participant Claimants challenge this principle, but fail to offer any coherent rationale
in support of their challenge. They acknowledge that ERISA requires that title to all ERISA plan
assets be held by the plan trustee (see 29 U.S.C. § 1103(a)), but insist that, simply because they
are participants in defined contribution plans, they had a sufficient interest in the assets of those
plans to make them eligible for customer status under SIPA. (See ECF 4748 at 6-8; ECF 4750 at
6-8; ECF 4755 at 6-7.) Remarkably, in support of their position, Sterling and OSG invoke
LaRue v. DeWolff, Boberg, and Assocs., Inc., 552 U.S. 248 (2008), and Milgram v. Orthopedic
Assocs. Defined Contribution Pension Plan, 666 F.3d 68 (2d Cir. 2011), the very cases that
establish conclusively that a defined contribution plan, not its participants, owns the assets held
by the plan. (See ECF 4748 at 7-8; ECF 4750 at 6-8.)
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But both LaRue and Milgram made a clear distinction between a plan and its participants,
and premised their holdings, in part, on the absence of participant property rights in plan
property. Thus, in LaRue, for example, while the Supreme Court acknowledged that, under the
express terms of ERISA, a plan beneficiary may sue a plan administrator for breach of fiduciary
duty, the Court also explained that the participant can only bring such a suit “on behalf of a plan”
and only for injuries to the plan, not “for individual injuries distinct from plan injuries.” See
LaRue, 552 U.S. at 253, 256.
Milgram is even more clear. In Milgram, a defined contribution plan participant sued the
plan for erroneously transferring funds out of his plan “account.” Milgram, 666 F.3d at 70-72.
The plan invoked as a defense an ERISA’s “anti-alienation” provision, which states that benefits
provided under an ERISA-covered plan may not be assigned or alienated. Id. See also, 29
U.S.C. § 1056(d)(1). Specifically, the plan contended that entry of an award against it would
harm plan participants because it would force the plan to reallocate assets from the “accounts” of
those participants to the “account” of the plaintiff-participant. Milgram, 666 F.3d at 71.
The Second Circuit rejected the plan’s argument, finding that the anti-alienation
provision applies only to a plan participant’s benefit rights, not to plan assets. The court
explained that a defined contribution plan, not its participants, owns all assets held by the plan;
that participants have no property rights in plan assets; and that “a single participant’s ‘account’
is merely a bookkeeping entry that is used at the time of his retirement to determine what
benefits he is entitled to receive.” Milgram, 666 F.3d at 74. In light of these findings, the court
concluded that an award could be entered against the Milgram plan for its misconduct,
irrespective of the impact that such an award would have on the individual “accounts” of the
plan’s beneficiaries. Id. at 75-76.
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LaRue and Milgram thus make crystal clear that a defined contribution plan beneficiary
not only lacks title to any of the plan’s assets, but also has no other rights or interest in those
assets sufficient to confer “customer” status. Rather, the plan owns the assets and therefore only
the plan can entrust those assets to the SIPC-member broker dealer, the sine qua non of customer
status. New Times, 463 F.3d at 128.
B. The claimants here did not own any of the assets entrusted to BLMIS
As noted, the Plan Claimants take a different tack. The ERISA Plan Claimants insist that
ERISA’s plan assets rule gave them proportional ownership of the assets entrusted to BLMIS by
the income trust and BLMIS feeder funds in which they invested, while J.X. Reynolds & Co.
Deferred Profit Sharing Plan (“J.X. Reynolds”) asserts, without citation to any record support,
that it had a direct relationship with BLMIS. Both claimants are mistaken.
The ERISA Plan Claimants contend that: (1) the plan assets rule preempts the state trust
and LLC law providing that a trust beneficiary and an LLC owner have no property interest in
trust or LLC assets; and (2) even in the absence of preemption, state trust and LLC law can be
overridden by contract, which occurred here because the offering memoranda issued by the
income trust and LLC feeder funds in which the ERISA Plan Claimants invested referenced the
plan assets rule. The ERISA Plan Claimants’ first contention is based on a misreading of several
cases from outside this jurisdiction, continuing confusion of the scope of the definitions
contained in Title I of ERISA, and a complete failure to grapple with Section 1144(d) of ERISA,
which provides that preemption is precluded where it would alter the application of another
federal statute. Their second contention is wrong as a matter of law and fact.
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1. The plan assets rule does not preempt state trust and LLC law
The Income Trust and the feeder funds in which the Plan Claimants invested are all
governed by New York law, which provides unequivocally that title to the assets of a trust or
LLC is held by the trustee or LLC, and that the trust beneficiaries or LLC owners have no
cognizable interest in those assets. See, e.g., In re Suprema Specialties, Inc., 370 B.R. 517, 530
(S.D.N.Y. 2007) (an express trust cannot be created in New York without express intent to vest
title to the trust res in the trustee), aff’d, 309 Fed. Appx. 526 (2d Cir. 2009); In re Brunswick
Hosp. Center, Inc., 156 B.R. 896, 900 (E.D.N.Y. 1993) (same); N.Y. Ltd. Liab. Co. Law § 601
(McKinney 2011) (“[A] member has no interest in specific property of the limited liability
company”). In arguing that these laws are preempted by the plan assets rule, the ERISA Plan
Claimants contend that: (1) the plan assets rule applies outside the context of Subtitle I of
ERISA, despite express language to the contrary in the statute; and (2) for purposes of ERISA’s
preemption provision, New York’s trust and LLC laws “relate to” the subject ERISA plans
because they would somehow interfere with ERISA fiduciary provisions. In both instances, the
ERISA Plan Claimants rely upon, but badly misread, cases from outside this jurisdiction.
Section 1002 of ERISA, which contains the “plan assets” definition that forms the source
of the plan assets rule upon which the ERISA Plan Claimants place so much weight, provides
expressly that the definitions in the section apply only for purposes of Title I of ERISA. See 29
U.S.C. § 1002.
The courts have long recognized and accepted this limitation.
See, e.g.,
DeBreceni v. Graf Bros. Leasing, Inc., 828 F.2d 877, 879 (1st Cir. 1987) (Subchapter I
definitions do not apply to Subchapter III of ERISA), cert. den. sub. nom., New England
Teamsters and Trucking Industry Pension Fund v. Graf, 484 U.S. 1064 (1988); Brown v. Astro
6
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Holdings, Inc., 385 F.Supp.2d 519, 527-28 (E.D. Pa. 2005); Canario v. Lidelco, Inc., 782 F.
Supp. 749, 757 (E.D.N.Y. 1992).
In arguing the contrary, the ERISA Plan Claimants rely exclusively on a group of
authorities that either have nothing to do with the plan assets rule or confirm that the rule applies
only in the context of Title I of ERISA. In Bank of New York v. Janowick, 470 F.3d 264 (6th
Cir. 2006), cert. den. sub nom., Southwire Co. v. Janowick, 552 U.S. 825 (2007), the Sixth
Circuit adjudicated a dispute over the ownership of shares in an insurance company that had
issued an annuity policy to the trustee of a terminating ERISA plan. Following the trustee’s
purchase of this policy, the insurance company “demutualized,” i.e., converted from a mutual
insurance company to a stock company. Janowick, 470 F.3d at 267-68. As part of that action,
the insurance company issued shares in itself to compensate policy holders for their loss of
governance rights previously held by the policy holders in the mutual company. Id. In resolving
a dispute between the successor to the company that sponsored the terminating ERISA plan and
the employee/beneficiaries of that plan regarding ownership of those shares, the Sixth Circuit
found in favor of the employee/beneficiaries on the grounds that the trustee for the plan
purchased the annuity for the benefit of the employee/beneficiaries and that the company “did
not purchase any annuities…and was not the contract holder.” Id. at 273. The court concluded
that, because the company had no interest in the annuity, it had no interest in the shares offered
as a substitute for the governance rights accompanying the annuity. Id. Most important for
present purposes, the Sixth Circuit never mentioned the plan assets rule in Janowick, and
certainly did not invoke the rule as the basis for its decision. See id.
The Third Circuit’s decision in Secretary of Labor v. Doyle, 675 F.3d 187 (3d Cir. 2012)
is also inapposite. In Doyle, the court addressed the question whether certain assets qualified as
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“plan assets” for purposes of a breach of fiduciary claim brought under ERISA by the Secretary
of Labor against the fiduciaries of an ERISA plan. Doyle, 675 F.3d at 189-190. At most, the
court held that, for purposes of applying ERISA’s fiduciary provisions, the court may look to
non-ERISA law where the plan assets rule is inapplicable. Id. at ** 203-204. As the court made
clear, however, its decision was grounded upon ERISA, and thus provides no support whatsoever
for the notion that the plan assets rule applies outside that context.
See id. at * 200
(“Identification of plan assets is essential to determining Doyle’s fiduciary status” under
ERISA). The remaining authorities cited by the ERISA Plan Claimants are irrelevant here for
the same reason. See Jackson v. United States, 555 U.S. 1163 (2009) (vacating Fourth Circuit
decision based upon Solicitor’s General’s position (expressed in its brief in support of certiorari,
2009 WL 133443) that general property law governs meaning of “plan assets” in criminal
provision of ERISA); DOL Advisory Op. 94-31A (Sept. 9, 1994) (addressing the question
whether assets contributed to a grantor trust “would constitute plan assets under Title I of
ERISA” (emphasis added)).
The ERISA Plan Claimants’ contention that New York’s trust and LLC laws “relate to”
ERISA plans within the meaning of ERISA’s preemption provision is also devoid of support.
The Second Circuit has made clear that state laws of general applicability, whose operation does
not depend upon the existence of an ERISA plan, do not “relate to” such plans and are not
preempted. Hattem v. Schwarzenegger, 449 F.3d 423, 429 (2d Cir. 2006). In this regard, the
Second Circuit has explained that:
‘[T]he basic thrust of the pre-emption clause, then, was to avoid
multiplicity of regulation in order to permit the nationally uniform
administration of employee benefit plans,’ … and to prevent frustrating
plan administrators’ obligations to calculate uniform benefits levels
nationwide….
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In determining whether a particular state law runs afoul of these goals, the
[(Supreme)] Court has instructed that preemption is not called for ‘if the
state law has only a tenuous, remote, or peripheral connection with
covered plans, as is the case with many laws of general applicability.’ …
Furthermore, it is not sufficient that the law in question has an indirect
economic effect on choices; rather, the law must actually dictate which
choices must be made.
*************
The law at issue therefore functioned irrespective of the existence of an
ERISA plan and thus did not impermissibly create a ‘reference to’ an
ERISA plan.
Hattem, 449 F.3d at 429, 433 (citations and quotations omitted, emphasis in original).
In opposition, the ERISA Plan Claimants cite a group of cases for the proposition that
“any state law, even one of general applicability, directed to and connected with this area of
fiduciary conduct is preempted by ERISA.” (See ECF 4746 at 16-17.) But the state trust and
LLC laws in question here do not interfere in any way with ERISA’s fiduciary provisions. For
purposes of those provisions, along with the balance of Title I of ERISA, the plan assets rule
remains fully effective. Outside that context, however, where the plan assets rule, and the other
rules and regulations arising from the definitions contained in Section 1002 of ERISA do not
operate, under the express terms of that section, New York’s trust and LLC laws remain in full
effect. There is thus no conflict between the plan assets rule and New York property law, and
therefore no basis for preemption.
Even if there were such a conflict, preemption would be precluded by section 1144(d) of
ERISA, which prohibits preemption where it would alter the application of another federal
statute. See 29 U.S.C. § 1144(d). That, of course, is exactly what the ERISA Plan Claimants
seek, as they hope to acquire “customer” status otherwise unavailable to them under SIPA on the
basis of the preemption of New York trust and LLC law by ERISA’s plan assets rule. The
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ERISA Plan Claimants do not even bother to address section 1144(d) directly. Instead, they
contend that, even under New York law, they own the assets held entrusted to BLMIS by the
Income Trust and feeder funds in which they invested because the offering memoranda issued by
those entities made reference to the plan assets rule. That contention is erroneous for the reasons
detailed below. See infra. The ERISA Plan Claimants therefore have no response to the
preemption bar created by section 1144(d), and that bar is fully operative here.
2. The ERISA Plan Claimants have no contractual interest in the property
entrusted to BLMIS
As noted, the ERISA Plan Claimants rely heavily on the offering memoranda issued by
the entities in which they invested, contending that these documents created contracts that
incorporate the plan assets rule. While the offering memoranda to which the ERISA Plan
Claimants point do reference the plan assets rule, they merely describe that rule and note that it
will impose fiduciary obligations upon the managers of subject entities. More specifically, it is
clear in context that statements in these memoranda to the effect that entity assets will be treated
as “plan assets” of the investor/plans were intended to apply solely for purposes of the fiduciary
provisions of Title I of ERISA, like the plan assets rule itself. (See, e.g., ECF 4635-1, Ex. D at
22 (“The assets of the Group Trust will constitute ‘plan assets’ under regulations promulgated by
the DOL… [t]he Investment Manager will therefore be deemed a fiduciary with respect to each
investing Plan…” (emphasis added); ECF 4635-1, Ex. F at 38 (“Depending upon the percentage
of Interests purchased by Benefit Plan Investors…the underlying assets of the Company may be
considered to be assets of the ERISA Plans…[u]nder a regulation of the DOL…” (emphasis
added))). In fact, all of the offering memoranda refer repeatedly to the assets held by the entities
as being assets of the entities, indicating entity, not investor, ownership of the same. (See, e.g.,
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ECF 4635-1, Ex. D at 13 ¶ 5, 14 ¶ 8; ECF 4635-1, Ex. F at 2 (describing asset allocation), 12
(referencing “Current Allocation of Fund Assets”).
The matter is even clearer in light of the law applicable to these entities. Revenue Ruling
81-100, pursuant to which the Income Trust was established, provides that any trust in
conformity with the ruling must be “maintained at all times as a domestic trust in the United
States.” See Rev. Rul 81-100. Trusts created pursuant to ERISA are governed by the “common
law of trusts.” See Central States, Southeast and Southwest Areas Pension Fund v. Central
Transport, Inc., 472 U.S. 559, 570 (1985). Under the common law of trusts, the trustee, not the
trust beneficiaries, holds title to trust property. Austin Wakeman Scott, 2A The Law of Trusts §
265.4 (4th ed 1988) (“From the traditional point of view, it would seem that the trustee is the
legal owner of trust property…”). See also In re Suprema Specialties, Inc., 370 B.R. 517, 530
(S.D.N.Y. 2007) (under New York law, express trust requires an intent to vest title to the trust res
in the trustee). As noted, ERISA itself expressly requires that title to trust property be vested in
the trustee. See 29 U.S.C. § 1103(a). These principles confirm that the Income Trust is the
owner of the assets formerly held by the trust and entrusted by its trustee to BLMIS, and suggests
that the creators of the Income Trust understood that.
The same is true of these BLMIS feeder funds in which the ERISA Plan Claimants
invested. All of those funds were established as LLCs under New York law, which provides
expressly that LLC members have no interest in any of the LLC’s assets. See N.Y. Ltd. Liab.
Co. Law § 601 (McKinney 2011). Moreover, the operating agreements of the funds provide that
New York governs them, unless otherwise provided in the agreements. The agreements contain
nothing to the contrary, indicating, without doubt, that the creators of the funds intended the
funds to hold title to all fund assets. (See, e.g., ECF 4635-1, Exs. G, I.)
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3. J.X. Reynolds had no property interest sufficient for “customer” status
Unlike the ERISA Plan Claimants, J.X. Reynolds neither pushes the applicability of
ERISA’s preemption provision nor asserts that the offering memoranda issued by Petito, the
BLMIS account holder in which J.X. Reynolds invested, vested in J.X. Reynolds ownership
rights in assets held in that account. Instead, J.X. Reynolds asserts that Petito was acting as J.X.
Reynolds’s agent and that J.X. Reynolds made direct deposits into the account in Petito’s name
at BLMIS. (See ECF 4756 at 6.) J.X. Reynolds neither submits nor cites any record evidence in
support of its position.
Moreover, Petito was a general partnership organized under New York law, in which J.X.
Reynolds apparently purchased an interest as a general partner. (See ECF 4702 at 4.) Under
New York’s partnership law, a general partner is co-owner, with the other general partners, of
specific partnership property, holding such property as a “tenant in partnership.” See N.Y.
P’ship Law § 51(1) (McKinney 2005). In that capacity, a general partner has an equal right, with
the other general partners, to “possess specific partnership property for partnership purposes,”
but has no right to “possess such property for any other purpose without the consent of his
partners.” Id. at § 51(2)(a). Further, a general partner’s rights regarding specific partnership
property is not assignable by that partner individually. Id. at § 51(2)(b).
As a consequence, a general partner’s interest as a partner “grants no individually
exercisable rights to the partner,” and “a partner has no personal right in any specific partnership
property…”
Matter of Minton Group, Inc., 46 B.R. 222, 224-25 (Bankr. S.D.N.Y. 1985)
(quoting La Russo v. Paladino, 109 N.Y.S.2d 627, 630 (N.Y. Sup. Ct. 1951), aff’d, 116 N.Y.S.2d
617 (N.Y. App. Div. 1952)). Without such a right, a general partner’s interest in partnership
property is insufficient to confer “customer” status under SIPA as a matter of law, and J.X.
12
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 17 of 44
Reynolds’s claim for the same therefore was properly denied. See, e.g., SIPC v. Morgan
Kennedy, Inc., 533 F.2d 1314, 1318 (2d Cir. 1976), cert. den. sub nom., Trustees of the Reading
Body Works, Inc. v. Sec. Inv. Prot. Corp., 426 U.S. 936 (1976); Matter of Weis Secs., Inc., 1977
WL 1043, at * 4 (S.D.N.Y. 1977) (SIPA intended to protect claimants with “an unrestricted right
to receive on demand these securities which belong to them”).
C. The claimants’ remaining arguments revisit issues already decided
The claimants’ remaining arguments – e.g., that they need not have accounts in their own
names at BLMIS – have already been considered by this Court and by the District Court in
BLMIS and Aozora, respectively. For the reasons discussed in detail in those decisions, in the
absence of a sufficient interest held in cash or securities held, or purportedly held, by BLMIS –
which the claimants here manifestly lack - the claimants are ineligible for “customer” status.
13
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 18 of 44
CONCLUSION
For the aforementioned reasons, the Court should enter an order granting the Trustee’s
motion and upholding the Trustee’s denial of the customer claims of the Plan Claimants and the
Participant Claimants.
DATED: May 10, 2012
Respectfully submitted,
/s/ Josephine Wang
JOSEPHINE WANG
General Counsel
KEVIN H. BELL
Senior Associate General Counsel
For Dispute Resolution
CHRISTOPHER H. LAROSA
Senior Associate General Counsel –
Litigation
SECURITIES INVESTOR
PROTECTION CORPORATION
805 Fifteenth Street, N.W., Suite 800
Washington, D.C. 20005
Telephone: (202) 371-8300
Facsimile: (202) 371-6728
E-mail: jwang@sipc.org
E-mail: kbell@sipc.org
E-mail: clarosa@sipc.org
14
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 19 of 44
CERTIFICATE OF SERVICE
IT IS HEREBY CERTIFIED that a true and correct copy of the foregoing SUR-REPLY
OF THE SECURITIES INVESTOR PROTECTION CORPORATION IN SUPPORT OF
THE TRUSTEE’S MOTION FOR AN ORDER AFFIRMING TRUSTEE’S
DETERMINATIONS DENYING CLAIMS OVER ERISA-RELATED OBJECTIONS was
served this 10th day of May 2012 upon counsel for those parties who receive electronic service
through ECF and by electronic mail or United States first class mail, postage prepaid, upon those
parties identified in the attachment hereto.
/s/ Christopher H. LaRosa
CHRISTOPHER H. LAROSA
15
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 20 of 44
SCHEDULE A
Internal Revenue Service
District Director
290 Broadway
New York, New York 10008
Internal Revenue Service
Centralized Insolvency Operation
Post Office Box 7346
Philadelphia, PA 19101-7346
U.S. Department of Justice, Tax Division
Box 55
Ben Franklin Station
Washington, DC 20044
Securities Investor Protection Corporation
Kevin Bell – kbell@sipc.org
Josephine Wang – jwang@sipc.org
Securities and Exchange Commission
Alexander Mircea Vasilescu – vasilescua@sec.gov
Terri Swanson – swansont@sec.gov
Preethi Krishnamurthy – krishnamurthyp@sec.gov
United States Attorney for SDNY
Carolina Fornos – carolina.fornos @usdoj.gov
Alicia Simmons – Alicia.simmons@usdoj.gov
Matthew Schwartz – matthew.schwartz@usdoj.gov
Counsel to the JPL
Eric L. Lewis – Eric.Lewis@baachrobinson.com
BLMIS Customers – Via Regular Mail
Edward H. Kohlschreiber
35455 Ocean Blvd. Apt. 607
South Palm Beach, FL 33480
Sonya Kahn
1701 South Flagler Drive Apt. 1703
West Palm Beach, FL 33401-7343
Marvin D. Waxberg
5181 Prairie Dunes Village Circle
Lake Worth, FL 33463-8217
Case 1:12-cv-01039-DLC Document 10
Richard G. Corey
1235 Edgewood Drive
Charleston, W.V. 25302
Ng Shok Mui Susanna
Ng Shok Len
12B Marigold Mansion
Taikoo Shing, Hong Kong
Cecilia M. Parker
11 South Shore Trail
Sparta, NJ 07871
Guy S. Parker
3 Madison Drive
Ogdensburg, NJ 07439
Panagiotis Moutzouris
8 Aiolou Street
Voula GR-16673
Greece
Harriet Rubin
9733 Ravine Avenue
Las Vegas, NV 89117
Ethel L. Chambers
S. James Chambers
4244 SE Centerboard LN
Stuart, FL 34997
Anna Lowit
5700 Queen Palm Ct Apt. A
Delray Beach, FL 33484
Barbara Moss Estate
c/o Irving Moss
665 Thwaite Pl Apt. 3J
Bronx, NY 10467-7905
George H. Hulnick
5257 Fountains Dr. So Apt. 501
Lake Worth, FL 33467
2
Filed 05/10/12 Page 21 of 44
Case 1:12-cv-01039-DLC Document 10
Martin M. Surabian
Alice V. Surabian in trust for Karan T. Surabian
Gregory Surabian
Erik M. Surabian
Stephanie La-Flash Surabian
Kristen E. Surabian
Richard Surabian
Steven Surabian
Stephanie La-Flash Surabian
P.O. Box 397
W. Hyannisport, MA 02672
and
1230 Rt. 28
South Yarmouth, MA 02664
Kenneth Springer
2267 Newbury Dr.
Wellington, FL 33414
Peerstate Equity Fund L.P.
c/o Lou Prochilo
43 West St.
Northport, NY 11768
Chris P. Tsukoa
A. Angelaki
1202 Parrilla de Avila
Tampa, FL 33613
Hilda Drucker
5 Schenck Ave, Apt. 3-I
Great Neck, NY 11021
John H. Petito
3639 River Road
Lumberville, PA 18933
Bernard W. Braverman
420 East 54th Street #25B
New York, NY 10022
(Courtesy) Email: berniebraverman@gmail.com
Richard C. Brockway
705 Harbour Drive
Vero Beach, FL 32963
3
Filed 05/10/12 Page 22 of 44
Case 1:12-cv-01039-DLC Document 10
Kimberly S. Stoller
710 8th Avenue Apt. 6E
Belmar, NJ 07719
KR Erwin Hawle
Dorfstrasse 67
4865 Nussdorf
Austria
Birgit Peters
Manto Management Inc.
323 W. 80th St. #6W
New York, NY 10024
Shao-Po Wang
No. 69, Zhongshan Rd., Tucheng Dist.
New Taipei City 236, Taiwan
Chi-Hua Liao
No. 449 Sanmin Road
Jhubei City, Hsinchu County
Taiwan
Alder Family Foundation
6424 Brookside Rd
Chevy Chase, MD 20814
(Courtesy) Email: lovormon@aol.com
BLMIS Customers – Via EMail
Maurice Sandler
Gloria Sandler
Email: mauricesandler@bcglobal.net
Lamar Ellis Trust
Lamar Ellis
Email: lamelli@verizon.net
Michael E. Fisch
Sudeshna M. Fisch
Email: fischwave@comcast.net
Lamar Ellis Trust
Lamar Ellis
Email: lamelli@verizon.net
4
Filed 05/10/12 Page 23 of 44
Case 1:12-cv-01039-DLC Document 10
Michael E. Fisch Sudeshna M. Fisch
Email: fischwave@comcast.net
Daniel L. Gaba
c/o Rhoda S. Gaba
Email: rhodan@embarqmail.com
Jean-Marie Jacques
Email: jacques123@wanadoo.es
Samuel Frederick Rohdie
Lam Shuk Foon Margaret
Email: srohdie@bellsouth.net
Gail B. Oren Revocable Trust dtd. 9/8/95
Gail B. Oren as Trustee
Email: oreng@bellsouth.net
Sharon Lee Tiner
Email: sltiner@yahoo.com
David B. Epstein (IRA Bene)
Email: david1943@comcast.net
Marshall W. Krause, Esq.
Email: mrkruze@comcast.net
Peerstate Equity Fund, L.P.
Email: rng67@comcast.net
Deborah L. Fisch
Email: dfisch1@twcny.rr.com
Paul J. Fisch
Email: pfisch@twcny.rr.com
Sunyei Ltd. Jaques Lamac
Email: jaqueslamac@gmail.com
Simcha Gutgold
Email: simcha.gutgold@gmail.com
Au Yuet Shan
Email: eau203@gmail.com
PFC Nominees Limited
Email: info@pfcintl.com
5
Filed 05/10/12 Page 24 of 44
Case 1:12-cv-01039-DLC Document 10
Lee Mei-Ying
Email: icbcmylee@yahoo.com.tw
Richard Jeffrey Clive Hartley
Email: rjch@netvigator.com
Robert Douglas Steer
Jeanette Margaret Scott Steer
Email: bobjen8@bigpond.com
Samore 1992 Family Trust, John Samore
Gayle Samore Co-Trustees
John Samore, Jr.
Ronald E. Samore, Sr.
James R. Samore
Email: johnsamore@hotmail.com
Partricia M. Hynes
Roy L. Reardon JTWROS
Email: rreardon@stblaw.com
Cheung Lo Lai Wah Nelly
Email: freedomlo@yahoo.com.hk
Timothy Robert Balbirnie
Email: tim.balbirnie@gmail.com
Kamal Kishore Muchhal
Aruna Muchhal
Email: muchhal@netvigator.net
MLSMK Investments Co
Email: stanleymkatz@mac.com
Charles Nicholas Doyle
Linda Doyle
Email: linchasd@netvigator.com
John Stirling Gale
Email: galejs@gmail.com
Li Fung Ming Krizia
Email: krizia_ligale@yahoo.com.hk
Lindel Coppell
Email: lindencoppell@gmail.com
6
Filed 05/10/12 Page 25 of 44
Case 1:12-cv-01039-DLC Document 10
Paul Maddocks
Email: maddockspaul@gmail.com
Frederick Cohen and Jan Cohen JT WROS
Email: fcohen@duanemorris.com
Carole Coyle
Email: bionicdoll@aol.com
Martha Alice Gilluly
Email: marny@corsair2.com
Phyrne and Ron LLC
Email: jpitkin@umich.edu
Howard Stern
Email: hstern@wzssa.com
Robins Family Limited Partnership
Email: charles.robin@weil.com
Dewey H. Lane
Email: dewlane@gmail.com
Fondo General De Inversion Centro America-No, S.A.
FJ Associates, S.A.
Krates, S.A.
Email: pabst@mantomgmt.com
Elaine and Sidney Goldstein
Email: grandpastuffit@bellsouth.net
Rhouda Macdonald
Email: rmacdon482@aol.com
Jeanne H. Rosenblum
Email: prosenblum@mindspring.com
Capital Bank
Email: Christoph.stocker@capitalbank.at
Email: Volker.enzi@bapitalbank.at
J.W. Nijkamp
Email: jwnijkamp@kpnmail.nl
7
Filed 05/10/12 Page 26 of 44
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 27 of 44
Martin Wimick
Email: martinwimick@hotmail.com
Bullock Family Estate
Andrew Bullock
Courtney Bullock
Diana Bullock
Kerry Scarvie
Email: abullock5150@cox.net
Stuart Nierenberg, Trustee for Ltd Editions Media Inc. Defined Benefit Plan Trust dtd 2/9/99
Email: stuartn00@alumni.princeton.edu
Alice J. Rawlins
Email: ajrawlins@bellsouth.net
Linda Wolf
Rita Wolf
Email: wolfie2400@yahoo.com
Stephen Hill
Email: leyla.hill@hos.com
Waterland Investment Services
Email: admin@waterland-investment.ne
Joseph J. Nicholson
Email: jn-pro-se@pobox.com
Lo Kin Ming
Email: godwinlo@swireproperties.com
Ralph Schiller
Email: optics@earthlink.net
Patsy P. Jones
Email: 335pat@roadrunner.com
Donald P. Weber
Email: mdweb27@comcast.net
Harvey Barr
Lillian Barr
Email: hbarr@plegalteam.com
Yvonne Roodberg
Email: cissie2010@gmail.com
8
Case 1:12-cv-01039-DLC Document 10
Wim C. Helsdingen
Email: wc.helsdingen@casema.nl
Donald Schupak
Email: dschupak@schupakgroup.com
Joanne Rosen
Amy Cappellazzo
Email: jr@beacon-ny.com
Nancy Dver Cohen
Email: ndver@comcast.net
J. Todd Figi Revocable Trust
Email: jakefigi2@aol.com
Email: terridirkse@san.rr.com
Baudrey Gerard
Email: baudryg@bluewin.cr
Matthew F. Carroll
Email: mcarroll16@msn.com
David Drucker
Email: daved628@aol.com
Phyllis Pressman
Email: peplady5@gmail.com
Crisbo S.A.
Email: info.luxembourg@atcgroup.com
Ilse Della-Rowere
Email: roman@della-rowere.at
Rausch Rudolf
Email: rudolf.rausch@gmail.com
Kwok Yiu Leung
Siu Yuen Veronica Nh
Email: yiuleung@yahoo.com.hk
Email: yiuleunghk@gmail.com
Fifty-Ninth Street Investors LLC
Email: truggiero@resnicknyc.com
9
Filed 05/10/12 Page 28 of 44
Case 1:12-cv-01039-DLC Document 10
KHI Overseas Ltd
Email: ew@khiholdings.com
Arlene R. Chinitz
Email: arlenerc54@hotmail.com
The Gottesman Fund
Email: dgottesman@firstmanhattan.com
Goore Partnership
Email: hyassky@aol.com
Nicholas Kardasis
Email: gdnite@earthlink.net
BF+M Life Insurance Company Limited
Email: jsousa@bfm.bm
Alan G. Cosner
Email: alan@cosnerlaw.com
Chien-Liang Shih
Email: gary.libra@gmail.com
Heng-Chang Liang
Email: ts.yang@msa.hinet.net
Andy Huang
Email: andy.huang@sofos.com.sg
John B. Malone
Email: doctor1000@earthlink.net
John P. Harris
Email: johnph@comcast.net
Jose Haidenblit
Email: chore55@yahoo.com
Richard Hoefer
Email: richard.hoefer@utanet.at
Notices of Appearance
Michael D. Sirota, Esq.
Cole, Schotz, Meisel, Forman & Leonard, P.A.
Email: msirota@coleschotz.com
Attorneys for KML Asset Management LLC
10
Filed 05/10/12 Page 29 of 44
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 30 of 44
Mark S. Mulholland
Thomas A. Telesca, Esq.
Ruskin Moscou Faltischek, P.C.
Email: mmulholland@rmfpc.com
Email: ttelesca@rmfpc.com
Attorney for Irwin Kellner (“Kellner”), The 2001 Frederick DeMatteis Revocable Trust and the
DeMatteis FLP Assets
Stuart I. Rich, Esq.
James M. Ringer, Esq.
Meister, Seelig & Fein LLP
Email: sir@msf-law.com
Email: jmr@msf-law.com
Attorneys for Jasper Investors Group LLC (“Jasper”)
Matthew Gluck, Esq.
Brad N. Friedman, Esq.
Sanford P. Dumain, Esq.
Jonathan M. Landers
Milberg LLP
Email: mgluck@milberg.com
Email: bfriedman@milberg.com
Email: sdumain@milberg.com
Email: jlanders@milberg.com
Attorney for Ruth E. Goldstein, June Pollack, Gerald Blumenthal, Blumenthal & Associates
Florida General Partnership, Judith Rock Goldman, the Horowitz Family Trust, and the
Unofficial Committee of Certain Claim Holders
William B. Wachtel, Esq.
Howard Kleinhendler, Esq.
David Yeger, Esq.
Wachtel & Masyr, LLP
Email: Wachtel@wmllp.com
Email: hkleinhendler@wmllp.com
Email: dyeger@wmllp.com
Attorneys to Rosenman Family LLC
William M. O’Connor, Esq.
Crowell & Moring LLP
E-mail: woconnor@crowell.com
Attorneys for Jitendra Bhatia, Gopal Bhatia, Kishanchand Bhatia, Jayshree Bhatia, Mandakini
Gajaria, Tradewaves Ltd., Parasram Daryani, Neelam P. Daryani, Vikas P. Daryani, Nikesh P.
Daryani, Ashokkumar Damodardas Raipancholia, Dilip Damodardas Raipancholia, Rajeshkumar
Damodardas Raipancholia, Kishu Nathurmal Uttamchandani, Prerna Vinod Uttamchandani,
Rajendrakumar Patel, Vandna Patel, Arjan Mohandas Bhatia, Kishin Mohandas Bhatia, Suresh
M. Bhatia, Bharat Mohandas, and Aarvee Ltd.
11
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 31 of 44
Robert William Yalen
Assistant United States Attorney for the Southern District of New York
E-mail: robert.yalen@usdoj.gov
Attorney for the United States of America
Stephen A. Weiss
Parvin K. Aminolroaya, Esq.
Seeger Weiss LLP
Email: sweiss@seegerweiss.com
Email: paminolroaya@seegerweiss.com
Attorney for Marilyn Cohn Gross, Bernard Seldon, Lewis Franck, and Barbara Schlossberg
Attorney for The M & B Weiss Family Limited Partnership of 1996 c/o Melvyn I. Weiss, Melvyn
I. Weiss, Barbara J. Weiss, Stephen A. Weiss, Leslie Weiss and Gary M. Weiss
Frank F. McGinn
Bartlett Hackett Feinberg P.C.
Email: ffm@bostonbusinesslaw.com
Attorney for Iron Mountain Information Management, Inc.
Barry R. Lax
Brian J. Neville
Brian Maddox
Lax & Neville, LLP
Email: blax@laxneville.com
Email: bneville@laxneville.com
E-mail: bmaddox@laxneville.com
Attorneys for Rose Less, and PJFN Investors LP
Shawn M. Christianson, Esq.
Buchalter Nemer, A Professional Corporation
Email: schristianson@buchalter.com
Attorney for Oracle USA, Inc. (“Oracle”), and Oracle Credit Corporation
Dennis C. Quinn
Barger & Wolen, LLP
Email: dquinn@bargerwolen.com
Attorney for Jewish Community Foundation of the Jewish Federation – Council of Greater Los
Angeles
Alan Nisselson, Esq.
Howard L. Simon, Esq.
Email: anisselson@windelsmarx.com
Email: hsimon@windelsmarx.com
Attorneys for Alan Nisselson, Interim Chapter 7 Trustee of Bernard L. Madoff
12
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 32 of 44
Eric L. Lewis, Esq.
Baach Robinson & Lewis PLLC
Email: eric.lewis@baachrobinson.com
Attorney for Stephen John Akers, Mark Richard Byers, and Andrew Laurence Hosking
Joseph E. Shickich, Jr.
Erin Joyce Letey
Riddell Willams P.S.
Email: jshickich@riddellwilliams.com
Email: eletey@riddellwilliams.com
Attorneys for Microsoft Corporation and Microsoft Licensing, GP (collectively, “Microsoft”)
Adam L. Rosen
Silverman Acampora LLP
Email: ARosen@SilvermanAcampora.com
Attorney for Talon Air, Inc.
Angelina E. Lim, Esq.
Johnson, Pope, Bokor, Ruppel & Burns, P.A.
Email: angelinal@jpfirm.com
Attorney for Anchor Holdings, LLC
Sanford P. Rosen, Esq.
Sanford P. Rosen & Associates, P.C.
Email: srosen@rosenpc.com
Attorneys for Judith S. Schustack, David A. Schustack, Robert J. Schustack, Shirley Schustack
Conrad, and Amy Beth Smith
Marsha Torn, Esq.
Calabrese and Torn, Attorneys at Law
Email: mcalabrese@earthlink.net
Attorney for Lawrence Torn
Judith L. Spanier, Esq.
Abbey Spanier Rodd & Abrams, LLP
jspanier@abbeyspanier.com
Attorneys for ELEM/Youth in Distress Israel, Inc. (“ELEM”)
David J. Molton, Esq.
Martin S. Siegel, Esq.
Brown Rudnick LLP
E-mail: dmolton@brownrudnick.com
Email: msiegel@brownrudnick.com
Attorneys for Kenneth M. Krys and Christopher D. Stride as Liquidators of and for Fairfield Sentry
Limited
13
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 33 of 44
Karen E. Wagner
Dana M. Seshens
Denis J. McInerney
Jonathan D. Martin
Davis Polk & Wardwell LLP
Email: karen.wagner@davispolk.com
Email: dana.seshens@davispolk.com
Email: denis.mcinerney@davispolk.com
Email: jonathan.martin@davispolk.com
Attorneys for Sterling Equities Associates and Certain Affiliates
David B. Bernfeld
Jeffrey L. Bernfeld
Bernfeld, Dematteo & Bernfeld, LLP
Email: davidbernfeld@bernfeld-dematteo.com
Email: jeffreybernfeld@bernfeld-dematteo.com
Attorneys for Dr. Michael Schur and Mrs. Edith A. Schur
Joel L. Herz
Law Offices of Joel L. Herz
Email: joel@joelherz.com
Attorney for Samdia Family, LP
Stephen Fishbein
James L. Garrity Jr.
Richard F. Schwed
Shearman & Sterling LLP
Email: sfishbein@shearman.com
Email: jgarrity@shearman.com;
Email: rschwed@shearman.com
Attorneys for Carl J. Shapiro and Associated Entities
Seth C. Farber
Kelly A. Librera
Dewey & Leboeuf LLP
E-mail: sfarber@deweyleboeuf.com
Email: klibrera@deweyleboeuf.com
Attorneys for Ellen G. Victor, holder of Bernard L. Madoff Investment Securities LLC Accounts
1ZA128-3 and 1ZA128-40, Diana P. Victor, Ariana Victor, Justin Victor Baadarani, Shoshanna
Remark Victor and Leila Victor Baadarani
14
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 34 of 44
Daniel M. Glosband
David J. Apfel
Brenda R. Sharton
Larkin M. Morton
Goodwin Procter LLP
Email: dglosband@goodwinprocter.com
Email: dapfel@goodwinprocter.com
Email: bsharton@goodwinprocter.com
Email: lmorton@goodwinprocter.com
Attorneys for Jeffrey A. Berman, Russell deLucia, Ellenjoy Fields, Michael C. Lesser,Norman E.
Lesser Rev. 11/97 Rev. Trust, Paula E. Lesser 11/97 Rev. Trust and Jane L. O’Connor as Trustee
of the Jane O’Connor Living Trust
Russell M. Yankwitt
Yankwitt & Associates LLC
Email: russell@yankwitt.com
Attorneys for Carol Rosen
Barton Nachamie, Esq.
Todtman, Nachamie, Spizz & Johns, P.C.
E-mail: bnachamie@tnsj-law.com
Attorneys for ABG Partners d/b/a ABG Investments, Bruce Graybow, as a Partner of ABG
Partners, and Graybow Communications Group, Inc.
Mark W. Smith, Esq.
Timothy A. Valliere, Esq.
Smith Valliere PLLC
Email: msmith@svlaw.com
Email: tvalliere@svlaw.com
Attorneys to Shana D. Madoff
Brett S. Moore
Porzio Bromberg & Newman P.C.
Email: bsmoore@pbnlaw.com
Attorneys for Paul Laplume and Alain Rukavina, Court Appointed Liquidators for LuxAlpha Sicav
and Luxembourg Investment Fund
Bernard V. Kleinman, Esq.
Alan Berlin, Esq.
Aitken Berlin LLP
Email: bvkleinman@aitkenberlin.com
Email: adberlin@aitkenberlin.com
Attorneys for Susan Saltz Charitable Lead Annuity Trust Susan Saltz Descendants Trust
15
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 35 of 44
Jeffrey G. Tougas
Fred W. Reinke
Mayer Brown LLP
E-mail: jtougas@mayerbrown.com
Email: freinke@mayerbrown.com
Attorneys for Mutua Madrileña Automovilista Ramo de vida, AXA Private Management, and
Fondauto Fondo de Pensiones, SA
Richard A. Cirillo
Arthur J. Steinberg, Esq.
Heath D. Rosenblat, Esq.
King & Spalding LLP
Email: rcirillo@kslaw.com
Email: asteinberg@kslaw.com
Email: hrosenblat@kslaw.com
Attorney for National Bank of Kuwait, S.A.K. (“NBK”), Lemania SICAV-SIF, and NBK Banque
Privee and counsel for the Pascucci Family
Linda H. Martin, Esq.
Joshua A. Levine, Esq.
Simpson Thacher & Bartlett LLP
Email: lmartin@stblaw.com
Email: jlevine@stblaw.com
Attorneys Spring Mountain Capital, LP
Martin L. Seidel
Cadwalader, Wickersham & Taft LLP
Email: martin.seidel@cwt.com
Attorneys for Milton Fine Revocable Trust, Milton Fine 1997 Charitable -2- Remainder Unitrust,
US Trust Co UD Peter M. Lehrer, Peter M. Lehrer and Eileen Lehrer, JSBR Associates LP and
The Apmont Group Inc. Pension Plan
Ernest Edward Badway , Esq.
Fox Rothschild LLP
Email: ebadway@foxrothschild.com
Attorney to Iris Schaum
Steven R. Schlesinger, Esq.
Shannon A. Scott, Esq.
Jaspan Schlesinger LLP
Email: sschlesinger@jaspanllp.com
Email: sscott@jaspanllp.com
Attorneys for Peter Zutty, Janet Jaffin Dispositive Trust and Janet Jaffin and Milton Cooper as
Trustees, Amy Luria Partners LLC, Amy Joel, Robert Luria Partners, and Samuels Family LTD
Partnership, Patricia Samuels, Andrew Samuels, Estate of Richard A. Luria, David Richman, Jay
Rosen Executors
16
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 36 of 44
Jeremy A. Mellitz
Withers Bergman, LLP
E-mail: Jeremy.Mellitz@withers.us.com
Attorney for Von Rautenkranz Nachfolger Special Investments LLC
Hunter T. Carter, Esq.
Shawanna L. Johnson, Esq.
Arent Fox LLP
Email: carter.hunter@arentfox.com
Email: johnson.shawanna@arentfox.com
Attorneys for Sanford Guritzky, Brenda Guritzky, Dana Guritzky Mandelbaum, Ronald P.
Guritzky, Guritzky Family Partnership LP, and Brenda H. Guritzky as Trustee of Trust B U/W
George H. Hurwitz (collectively the “Guritzky Parties”)
George Brunelle, Esq.
Anna Hadjikow
Brunelle & Hadjikow, P.C.
Email: gbrunelle@brunellelaw.com
Email: ahadjikow@brunellelaw.com
Attorneys for the James H. Cohen Special Trust, James H. Cohen, Morrie Abramson, Robyn
Berniker, BK Interest, LLC, The Marian Cohen 2001 Residence Trust, Alan D. Garfield, Erin M.
Hellberg, Barry E. Kaufman and Marion Tallering-Garfield
Chester B. Salomon
Becker, Glynn, Melamed & Muffly LLP
Email: csalomon@beckerglynn.com
Attorney for SBM Investments, LLP, Weithorn/Casper Associated for Selected Holdings LLC
Jonathan W. Wolfe
Barbara A. Schweiger
Skoloff & Wolfe, P.C.
Email: jwolfe@skoloffwolfe.com
Email: bschweiger@skoloffwolfe.com
Attorneys for Albert & Carole Angel
Richard J. McCord, Esq.
Carol A. Glick, Esq.
Certilman Balin Adler & Hyman, LLP
Email: rmccord@certilmanbalin.com
Email: cglick@certilmanbalin.com
Attorneys to Clayre Hulsh Haft, Morton L. Certilman and Joyce Certilman, Bernard Certilman,
Alyssa Beth Certilman,
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Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 37 of 44
Demet Basar
Eric B. Levine
Wolf Haldenstein Adler Freeman & Herz LLP
Email: basar@whafh.com
Email: levine@whafh.com
Attorneys to Nephrology Associates P.C. Pension Plan
Imtiaz A. Siddiqui
Steven N. Williams
Cotchett, Pitre & McCarthy
Email: isiddiqui@spmlegal.com
Email: swilliams@cpmlegal.com
Attorneys for Jay Wexler, Daniel Ryan, Theresa Ryan, Matthew Greenberg, Walter Greenberg,
Doris Greenberg, The Estate of Leon Greenberg and Donna M. McBride
Bernard J. Garbutt III, Esq.
Menachem O. Zelmanovitz, Esq.
Morgan, Lewis & Bockius LLP
Email: bgarbutt@morganlewis.com
Email: mzelmanovitz@morganlewis.com
Attorneys for the Kostin Company
Stephen Fishbein
James L. Garrity Jr.
Richard F. Schwed
Shearman & Sterling LLP
Email: sfishbein@shearman.com
Email: jgarrity@shearman.com
Email: rschwed@shearman.com
Attorneys for Harold S. Miller Trust Dated 12/4/64 FBO Elaine Miller,
Lilfam LLC, Lilyan Berkowitz Revocable Trust Dated 11/3/95, and Wellesley Capital
Management
Richard C. Yeskoo
Yeskoo Hogan & Tamlyn, LLP
Email: yeskoo@yeskoolaw.com
Attorneys for Joan L. Fisher, Carl T. Fisher, and the Trust U/A VIII of the Will of Gladys C. Luria
F/B/O Carl T. Fisher
Carmine D. Boccuzzi Jr., Esq.
David Y. Livshiz, Esq.
Cleary Gottlieb Steen & Hamilton LLP
Email: maofiling@cgsh.com
Attorneys for Citibank, N.A., Citibank North America, Inc., and Citigroup Global Markets
Limited
18
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 38 of 44
Casey D. Laffey
Reed Smith LLP
Email: claffey@reedsmith.com
Attorneys for Bart M. Schwartz, as Receiver of Gabriel Capital, L.P. and Ariel Fund Limited
Michael S. Pollok
Marvin and Marvin, PLLC
Email: mpollok@marvinandmarvin.com
Attorneys for Alan Hayes and Wendy Wolosoff-Hayes
James H. Hulme
Joshua Fowkes
Arent Fox LLP
Email: hulme.james@arentfox.com
Email: fowkes.joshua@arentfox.com
Attorney for Eleven Eighteen Limited Partnership; Bernard S. Gewirz; Carl S. Gewirz; Edward
H. Kaplan; Jerome A. Kaplan; Albert H. Small; 1776 K Street Associates Limited Partnership;
Estate of Robert H. Smith; Robert H. Smith Revocable Trust; Clarice R. Smith; Robert P. Kogod;
Marjet LLC; and Irene R. Kaplan
David S. Stone, Esq.
Amy Walker Wagner, Esq.
Carolyn B. Rendell
Stone & Magnanini LLP
Email: dstone@stonemagnalaw.com
Email: awagner@stonemagnalaw.com
Email: crendell@stonemagnalaw.com
Attorneys for Defendants David P. Gerstman and Janet Gerstman
Alan E. Marder, Esq.
Meyer, Suozzi, English & Klein, P.C.
Email: amarder@msek.com
Counsel for Judie B. Lifton and the Judie Lifton 1996
Jeffrey D. Sternklar
Duane Morris LLP
Email: jdsternklar@duanemorris.com
Attorneys for Magnus A. Unflat, the Eleanore C. Unflat Living Trust, Eleanore C. Unflat, in her
capacity as co- trustee of the Eleanore C. Unflat Living Trust, Magnus A. Unflat, in his capacity
as co-trustee of the Eleanore C. Unflat Living Trust, and Eleanore C. Unflat
19
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 39 of 44
Jeff E. Butler
Alexander M. Feldman
Clifford Chance US LLP
Email: Jeff.Butler@CliffordChance.com
Email: Alexander.Feldman@CliffordChance.com
Attorneys for Cardinal Management, Inc. and Dakota Global Investments, Ltd.
Bennette D. Kramer
Schlam Stone & Dolan LLP
Email: bdk@schlamstone.com
Attorneys for defendant Belfer Two Corporation
Christopher L. Gallinari
Bellows & Bellows, P.C.
Email: cgallinari@bellowspc.com
Counsel for Brian H. Gerber
Eric T. Schneiderman
New York State Education Department
Email: neal.mann@oag.state.ny.us
Eric D. Goldberg, Esq.
Stutman, Treister & Glatt
Email: egoldberg@stutman.com
Marc J. Kurzman, Esq.
Sandak Hennessey & Greco LLP
Email: mkurzman@shglaw.com
Attorneys for Orthopaedic Specialty Group, P.C. Defined Contribution Pension Plan Participants
Fred H. Perkins, Esq.
Michael R. Dal Lago, Esq.
Morrison Cohen LLP
Email: fhperkins@morrisoncohen.com
Email: bankruptcy@morrisoncohen.com
Attorneys for Customer Claimant David Silver
Andrew J. Ehrlich
Paul, Weiss, Rifkin, Wharton & Garrison LLP
Email: aehrlich@paulweiss.com
Attorneys for the Estate of Mark D. Madoff and Andrew H. Madoff, individually and as Executor
of the Estate of Mark D. Madoff
20
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 40 of 44
Peter N. Wang
Foley & Lardener LLP
Email: pwang@foley.com
Co-Counsel for Orthopaedic Specialty Group, P.C. Defined Contribution Pension Plan
Participants
William F. Dahill
Fletcher W. Strong
Wollmuth Maher & Deutsch LLP
Email: wdahill@wmd-law.com
Email: fstrong@wmd-law.com
Helen Davis Chaitman
Peter W. Smith
Julie Gorchkova
Becker & Poliakoff LLP
Email: hchaitman@becker-poliakoff.com
Email: psmith@becker-poliakoff.com
Email: jgorchkova@becker-poliakoff.com
Attorneys for Marshal Peshkin and defendants listed in Exhibit A
Robert J. Kaplan
Law Office of Robert J. Kaplan
Email: lawkap@aol.com
Attorney for MUUS Independence Fund LP and Michael W. Sonnenfeldt
Paula J. Warmuth
Glenn P. Warmuth
Stim & Warmuth, P.C.
Email: pjw@stim-warmuth.com
Email: gpw@stim-warmuth.com
Attorneys for Creditors, Michael Most and Marjorie Most
Martin H. Bodian
Bodian & Bodian, LLP
Email: mhbodian@gmail.com
Attorney for Linda Polatsch
21
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 41 of 44
Steven G. Storch, Esq.
Rena Andoh, Esq.
Brittany Nilson, Esq.
Storch Amini & Munves PC
Email: sstorch@samlegal.com
Email: randoh@samlegal.com
Email: bnilson@samlegal.com
Attorneys for PJ Administrator LLC, Trust Under Article Fourth U/W/O
Robert E. Klufer, Alyse Klufer, individually and in her capacity as trustee of the Trust
Under Article Fourth U/W/O Robert E. Klufer, and Elisabeth Klufer, in her capacity as
trustee of the Trust Under Article Fourth U/W/O Robert E. Klufer, Robert and Alyse
Klufer Family Trust “A”, Alyse Joel Klufer as Trustee of the Robert and Alyse Klufer
Family Trust “A”, Elisabeth Klufer, Nancy Greengrass, Jane Shrage, Natalie Greengrass,
Maxwell Greengrass, Damien Cave, Michael Shrage, R.H.1 and R.H.2
Steven H. Newman, Esq.
Robert A. Abrams, Esq.
Katsky Korins LLP
Email: snewman@katskykorins.com
Email: rabrams@katskykorins.com
Attorneys for Richard Spring, The Spring Family Trust, and The Jeanne T. Spring Trust, Estate of
Richard L. Cash, Richard L. Cash Declaration of Trust Dated September 19, 1994, James H.
Cash, David Cash, Jonathan Cash, and Gladys Cash, Gladys Cash and Cynthia J. Gardstein,
Freda Epstein Revocable Trust, Freda B. Epstein, and Jennifer Spring McPherson, and S. H. &
Helen R. Scheuer Family Foundation, Inc.
Kenneth W. Lipman, Esq.
Siegel, Lipman, Dunay, Shepard & Miskel, LLP
Email: klipman@sldsmlaw.com
Co-counsel of record with Katsky Korins LLP for defendants Richard Spring, The Spring Family
Trust, and The Jeanne T. Spring Trust
Daniel J. Kornstein, Esq.
William B. Pollard, III, Esq.
Amy C. Gross, Esq.
Kornstein Veisz Wexler & Pollard, LLP
Email: dkornstein@kvwmail.com
Email: wpollard@kvwmail.com
Email: agross@kvwmail.com
Attorneys for Certain American Securities Defendants
David A. Kotler
Dechert LLP
Email: david.kotler@dechert.com
Attorneys for Defendant Oppenheimer Acquisition Corp.
22
Case 1:12-cv-01039-DLC Document 10
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Carole Neville
SNR Denton US LLP
Email: carole.neville@snrdenton.com
Attorney for SNR Customers
William A. Habib, Esq.
Habib Law Associates, LLC
Email: wahabib@verizon.net
Attorney for Anthony F. Russo
Sedgwick M. Jeanite, Esq.
White and Williams LLP
Email: jeanites@whiteandwilliams.com
Attorney for Fabio Conti
Max Folkenflik
Folkenflik & McGerity
Email: max@fmlaw.net
Attorney for CRS Revocable Trust, Constance R. Sisler, individually, and in her capacity as
Settlor and Trustee of the CRS Revocable Trust, Allan R. Tessler, in his capacity as Trustee of the
CRS Revocable Trust, Edith G. Sisler, S. James Coppersmith Charitable Remainder Unitrust,
Robert S. Bernstein, Robert Auerbach Revocable Trust, the Joyce C. Auerbach Revocable Trust,
Robert Auerbach, individually, Joyce C. Auerbach, individually, as Trustee of the Robert
Auerbach Revocable Trust, and as Trustee of the Joyce C. Auerbach Revocable Trust, and others
Brian J. LaClair, Esq.
Blitman & King LLP
Email: bjlaclair@bklawyers.com
Attorneys for Bricklayers and Allied Craftsmen Local 2 Annuity Fund; Bricklayers and Allied
Craftworkers Local 2, Albany, New York, Health Benefit Fund; Bricklayers and Allied
Craftworkers Local 2, Albany, New York, Pension Fund; Building Trade Employers Insurance
Fund; Central New York Laborers’ Annuity Fund; Central New York Laborers’ Health and
Welfare Fund; Central New York Laborers’ Pension Fund; Central New York Laborers’ Training
Fund; Engineers Joint Welfare Fund; Engineers Joint Training Fund; International Brotherhood
of Electrical Workers Local Union No. 43 and Electrical Contractors Pension Fund;
International Brotherhood of Electrical Workers Local No. 43 and Electrical Contractors Welfare
Fund; I.B.E.W. Local 139 Pension Fund; I.B.E.W. Local 241 Pension Fund; I.B.E.W. Local 241
Welfare Benefits Fund; I.B.E.W. Local 325 Annuity Fund; I.B.E.W. Local 325 Pension Fund;
I.B.E.W. Local 910 Annuity Fund; I.B.E.W. Local 910 Pension Fund; I.B.E.W. Local 910 Welfare
Fund; I.B.E.W. Local 1249 Pension Fund; Laborers’ Local 103 Annuity Fund; Laborers’ Local
103 Welfare Fund; Laborers’ Local 103 Pension Fund; New York State Lineman’s Safety
Training Fund; Oswego Laborers’ Local No. 214 Pension Fund; Plumbers, Pipefitters and
Apprentices Local No. 112 Health Fund; Roofers’ Local 195 Annuity Fund; Roofers’ Local 195
Health & Accident Fund; Roofers’ Local 195 Pension Fund; Syracuse Builders Exchange,
Inc./CEA Pension Plan; SEIU 1199Upstate Pension Fund; Service Employees Benefit Fund;
Service Employees Pension Fund of Upstate New York; Local 73 Retirement Fund; Local 73
Annuity Fund; and Upstate Union Health & Welfare Fund
23
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 43 of 44
Marcy R. Harris
Schulte Roth & Zabel LLP
Email: marcy.harris@srz.com
Attorney for the Pati H. Gerber Defendants
Opposing Claimants
Howard Siegel
154 Porto Vecchio Way
Palm Beach Gardens, FL 33418
Pro Se, On behalf of the Siegal IRA
Angelo Bisceglie, Jr., Esq.
Mark Silberblatt, Esq.
Bisceglie & DeMarco, LLC
Email: abisceglie@bd-lawfirm.com
Email: msilberblatt@bd-lawfirm.com
Attorneys For the Upstate New York Bakery Drivers and Industry Pension Fund and the Upstate
New York Bakery Drivers and Industry Pension Fund
Stuart M. Nierenberg
Email: stuartn00@alumni.princeton.edu
Pro Se, On behalf of Plan Trustee for Ltd. Editions Media, Inc. Defined Benefit Pension Plan UA
Dtd. 2/9/99
Marc J. Kurzman
Sandak Hennessey & Greco, LLP
Email: mkurzman@shglaw.com
Attorney for Orthopaedic Specialty Group P.C. Plan Participants
Peter N. Wang
Foley & Lardner LLP
Email: pwang@foley.com
Attorney for Orthopaedic Specialty Group P.C. Plan Participants
Jennifer A. Clark
Brian J. LaClair
Jonathan M. Cerrito
Blitman & King LLP
Email: jaclark@bklawyers.com
Email: bjlaclair@bklawyers.com
Email: jmcerrito@bklawyers.com
Attorneys for Bricklayers and Allied Craftmen Local 2 Annuity Fund, et al.
24
Case 1:12-cv-01039-DLC Document 10
Filed 05/10/12 Page 44 of 44
Helen Davis Chaitman
Becker & Poliakoff LLP
Email: hchatiman@becker-poliakoff.com
Attorney for Jacqueline Green Rollover Account; Wayne Green Rollover Account; Wayne D.
Green Rollover Account; and J.X. Reynolds & Co. Deferred Profit Sharing Plan
Myron D. Rumeld
Anthony S. Cacace
Richard J. Corbi
Proskauer Rose LLP
Email: mrumeld@proskauer.com
Email: acacace@proskauer.com
Email: rcorbi@proskauer.com
Attorneys for Eric S. Saretsky and The Plan Administrator of the Sterling Equities Associates
Employee Retirement Plan
Paul J. Fisch
Deborah L. Fisch
5111 Coffee Tree Lane
North Syracuse, NY 13212
Pro se
Michael E. Fisch
250 Gerry Rd.
Chestnut Hill, MA 02467
Pro se
Steven H. Fisch
79 Princeton Road
Chestnut Hill, MA 02467
Pro se
25