Judge Holds Madoff Assets for Feds

Holdings may go to government through criminal forfeiture
By Harry Kimball,  Newser Staff
Posted Apr 20, 2009 6:19 PM CDT
Defense attorney Ira Sorkin.   (AP Photo)
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(Newser) – A federal judge stopped Bernard Madoff's assets from moving into bankruptcy today, saying the government may claim them through criminal forfeiture because of Madoff's Ponzi scheme, Bloomberg reports. US District Judge Denny Chin blocked more than $100 million from being moved, a setback to investors who had won the right to seek the money through bankruptcy court.

Separately, a bankruptcy judge appointed a temporary trustee today to oversee efforts to liquidate Madoff's holdings. He said attempts by US prosecutors and the SEC to recover assets were "disjointed and uncoordinated. I don’t want to see or hope not to see a turf war.” Madoff's attorney opposed the move, saying the interim trustee "will be unable to marshal any assets."