U.S. District Judge Jed Rakoff said in a decision yesterday that the trustee seeking money for Bernard Madoff's victims may be unable to pursue some claims against investment firms that fed client funds into the swindler's Ponzi scheme, Reuters reported yesterday. Judge Rakoff also said that trustee Irving Picard could not pursue "unjust enrichment" claims against spouses of Madoff's sons Andrew and Mark, saying the women did not qualify as "insiders" who could be held liable for fraud. The decision dated Dec. 5 is a setback for the recovery efforts of Picard, who is liquidating at Bernard L. Madoff Investment Securities LLC and has said Madoff's fraud caused investors to lose $17.3 billion of principal. Picard has recovered $9.5 billion, of which he has paid out a little over half. Madoff was arrested nearly five years ago, on Dec. 11, 2008, and is serving a 150-year prison term.
