Judge blocks Madoff bankruptcy

One week after investors file papers seeking $64 million from the swindler, judge says there is probable cause his assets should be handed over to government.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Amy Sahba, CNN

Which Fortune 500 company will emerge from the recession with the most respect?
  • Exxon Mobil
  • Wal-Mart
  • Chevron
  • ConocoPhillips
  • GE

NEW YORK (CNN) -- A federal judge Monday blocked Bernard Madoff's assets from being moved into bankruptcy, saying there is probable cause the assets should be forfeited to the government.

The order comes exactly one week after five investors filed papers in Federal Bankruptcy Court seeking nearly $64 million in an effort to force Madoff into involuntary bankruptcy.

Previously a different federal judge allowed investors to proceed with the filing, asserting that personal bankruptcy proceedings would be the best recourse for investors trying to recover their money.

The Securities and Exchange Commission had tried to block such proceedings, as did the trustee tasked with liquidating Madoff's assets and the U.S. Attorney's office.

Madoff is currently in jail at the Metropolitan Correctional Center in lower Manhattan after pleading guilty to operating on the largest fraud schemes in history. Madoff's lawyers have listed his worth at up to $826 million.

Madoff faces 150 years in prison when he is sentenced June 16.

-- CNN's Emily Anderson contributed to this report. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Tools to make your money grow You've started saving and built a financial base. Time for a few new strategies and tools to get your money to grow even more. From real estate to IRAs, here are some tips. More
Ready to start saving? Here's how to do it right When you are just starting out or finally starting to get serious about saving, the basics will get you far. Here are more than a dozen tips that will help you lay the base for building your net worth. More
Meet four kings of Alibaba's online retail empire Alibaba's shopping sites account for 80% of online retail in China. Meet four successful merchants. More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.