August 1, 2011 / 10:21 PM / 8 years ago

CORRECTED - UPDATE 1-Cohmad bid to dismiss $245 mln Madoff suit denied

(Corrects second to the last paragraph to “... the fraudulent nature of Madoff’s fund” not Picard’s fund)

NEW YORK, Aug 1 (Reuters) - A U.S. bankruptcy judge denied a bid by Cohmad Securities Corp to dismiss a $245 million lawsuit from the trustee in charge of recovering money for victims of Bernard Madoff’s Ponzi scheme.

In an order filed on Monday in U.S. Bankruptcy Court in Manhattan, Judge Burton Lifland let the case go forward, saying trustee Irving Picard has asserted valid claims.

Picard is looking to recover profits earned by Cohmad through investment with Madoff’s fund. The trustee has filed dozens of cases against investors who earned profits that are allegedly illegitimate because of the fraudulent nature of Madoff’s fund.

The case is Picard v. Cohmad Securities Corp et al, U.S. Bankruptcy Court, Southern District of New York, No. 09-ap-01789. (Reporting by Nick Brown; editing by Carol Bishopric)

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