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Picard seeks $5.2m from Jewish aid group

By Bloomberg News
October 15, 2011

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NEW YORK - The liquidator of Bernard L. Madoff’s firm has sued the Jewish Association for Services for the Aged for $5.2 million in fictitious profit over six years.

Trustee Irving Picard lost his bid to get back six years of Ponzi proceeds from the New York Mets owners last month, when US District Judge Jed Rakoff cut a $1 billion suit by two-thirds, saying he could take back only two years of withdrawals.

In yesterday’s suit against the Jewish Association, filed in Bankruptcy Court in New York, Picard said he’s entitled to claim six years of transfers under state and federal laws. The trustee last week asked Rakoff to allow him to appeal the Mets ruling.

“It suggests that he thinks he can get the Rakoff ruling overturned,’’ said Stephen Lubben, a bankruptcy law professor at Seton Hall University in Newark.

Picard said in court papers last week that Rakoff’s ruling on his lawsuit against the Mets owners, Fred Wilpon and Saul Katz, “arbitrarily’’ gave them some of the confidence man’s investors fictitious profits from the Ponzi scheme that “all customers were previously denied’’ by a higher court ruling.