June 1, 2020 / 1:46 PM / a month ago

U.S. Supreme Court rebuffs investors' bid to block Madoff trustee lawsuits

June 1 (Reuters) - The U.S. Supreme Court on Monday refused to hear a bid by major banks and companies including Koch Industries Inc to prevent a trustee chasing money for victims of imprisoned Ponzi scheme swindler Bernard Madoff from recouping funds that were transferred overseas.

The justices left in place a lower court’s ruling that revived dozens of lawsuits filed by Irving Picard, the trustee liquidating Madoff’s firm, aimed at recovering the foreign transfers. The defendants in the litigation had said the ruling improperly extended the reach of U.S. bankruptcy law beyond the country’s borders.

Asked by the justices to weigh in on the case, President Donald Trump’s administration said in a court filing that the ruling by the Manhattan-based the 2nd U.S. Circuit Court of Appeals was correct.

Reporting by Andrew Chung; Additional reporting by Jonathan Stempel; Editing by Will Dunham

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