Former investors with Bernard L. Madoff appeal from an order entered by the United States Bankruptcy Court for the Southern District of New York in the liquidation proceedings of Bernard L. Madoff Investment Securities LLC under the Securities Investor Protection Act (“SIPA”). The Trustee, Irving H. Picard, concluded that the investors’ “net equity,” which determines how customer property will be distributed in the wake of Madoff’s fraud, should be calculated based on the Net Investment Method. The bankruptcy court affirmed the decision of the Trustee and certified its decision for immediate appeal to this Court.
The Court of Appeals accepted the direct appeal from the bankruptcy court. The question presented by this appeal is whether the method Mr. Picard selected for carrying out his responsibilities under SIPA is legally sound.
The Court of Appeals held that the Trustee’s determination as to how to calculate “net equity” under SIPA is legally sound in light of the circumstances of this case and the relevant statutory language.
Affirmed.