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
10 things you'll love about Windows 10 There's a lot to like about Windows 10. Here are our favorite features in Microsoft's soon-to-be-released operating system. More
Warren Buffett's gone cold. How his top 10 stocks are doing The Oracle of Omaha is an investing legend. But several of Berkshire Hathaway's biggest investments are off to a lousy start in 2015. Will shareholders complain at the annual meeting in Omaha on Saturday? More
BMW's M235i doesn't compromise BMW's new M235i gives you the performance of an M car for a lot less money. 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