IN RE BERNARD L. MADOFF INVESTMENT SECURITIES LLC

Case No. 08-99000 (SMB) Adv. Proc. No. 08-01789 (SMB), Adv. Proc. No. 09-01182 (SMB).

515 B.R. 117 (2014)

IN RE: BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Debtor. Irving H. Picard, Trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC, Plaintiff, v. J. Ezra Merkin, Gabriel Capital, L.P., Ariel Fund Ltd., Ascot Partners, L.P., Ascot Fund Ltd., Gabriel Capital Corporation, Defendants.

United States Bankruptcy Court, S.D. New York.

Signed August 12, 2014.


Attorney(s) appearing for the Case

Baker & Hostetler LLP, Attorneys for Plaintiff, Irving H. Picard , Trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC, 45 Rockefeller Plaza, New York, NY 10111, Marc E. Hirschfield, Esq. , Marc D. Powers, Esq. , David J. Sheehan, Esq. , Of Counsel.

Dechert LLP, Attorneys for Defendants J. Ezra Merkin & Gabriel Capital Corporation, 1095 Avenue of the Americas, New York, NY 10036, Andrew J. Levander, Esq. , Gary J. Mennitt, Esq. , Jonathan D. Perry, Esq. , Neil A. Steiner, Esq. , M. Katherine Stroker, Esq. , Of Counsel.

Reed Smith LLP, Attorneys for Defendants Gabriel Capital, L.P. & Ariel Fund Ltd., 599 Lexington Avenue, New York, NY 10022, Casey D. Laffey, Esq. , James C. McCarroll, Esq. , Of Counsel.

Fulbright & Jaworski L.L.P., Attorneys for Defendant Ascot Partners, L.P., 666 Fifth Avenue, New York, NY 10103, Judith A. Archer, Esq. , David L. Barrack, Esq. , Daniel M. Glosband, Esq. , Christopher R. Newcomb, Esq. , David B. Schwartz, Esq. , Joseph A. Schwartz, Esq. , Matthew T. Tulchin, Esq. , Jami Mills Vibbert, Esq. , Of Counsel.

Sadis & Goldberg LLP, Attorneys for Ascot Fund Ltd., 551 Fifth Avenue, 21st Floor, New York, NY 10176, Douglas R. Hirsch, Esq. , Jennifer A. Rossan, Esq. , Of Counsel.


SIPA LIQUIDATION

MEMORANDUM DECISION GRANTING IN PART AND DENYING IN PART DEFENDANTS' MOTIONS TO DISMISS

STUART M. BERNSTEIN, United States Bankruptcy Judge:

Irving H. Picard, trustee (the "Trustee") for the liquidation of the estate of Bernard L. Madoff Investment Securities LLC ("BLMIS"), commenced this adversary proceeding to avoid and recover fraudulent transfers and disallow and/or subordinate certain defendants' claims. The defendants are...

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