Judge Denies Madoff Trustee Recovery of Foreign Transfers

, New York Law Journal


Dealing a win to foreign banks and investment service providers, Southern District Judge Jed Rakoff held that the recovery provision of the Bankruptcy Code is subject to the same limits on the extraterritorial reach of U.S. laws that apply to securities transactions under 'Morrison v. National Australia Bank Ltd.'

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  • Ravi Batra

    Extra-territorial reach of US laws does violence to foreign sovereignty, thereby inviting foreign nations to engage in retaliatory reciprocity to reach conduct by and between Americans on American soil. That it does violence to the comity of nations is obvious, and as such, must be a deliberate act of our political branches of government: the executive and Congress. One such example of statutory extra-territoriality jurisdiction, albeit, limited to "individual," not entity, liability is the Torture Victims Protection Act.

    So, Judge Jed Rakoff is on rock solid ground, and has protected American sovereignty by doing so. (Also see, Kiobel II.)

    Dated: 7/7/14
    Ravi Batra

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