Madoff Investors Assail Trustee Claim Cutoff Date

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Madoff Investors Assail Trustee Claim Cutoff Date (Update1)
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By Christopher Scinta

Feb. 10 (Bloomberg) -- Irving Picard, the trustee unwinding Bernard L. Madoff Investment Securities LLC, should exempt from a July claim deadline investors who may have to return cash withdrawn before the firm’s failure, according to court papers.

Investors may have a claim against the Madoff firm if they are forced to return the funds, some customers said in a filing today in U.S. Bankruptcy Court in Manhattan.

The Lucerne Foundation, Collingwood Enterprises and Douglas Rimsky want the deadline pushed back, according to court papers. While investors who withdrew money before Madoff Securities collapsed in December don’t have claims now, they could be entitled to make a claim should Picard sue them for the funds. The trustee can seek a so-called clawback if he believes the money was a preferential payment or fraudulent transfer.