The law-firm of the trustee liquidating Bernard Madoff’s defunct money-management firm asked a bankruptcy judge for $14.7 million in fees and $274,203 in expenses for work done from Dec. 15 to April 30.
Baker & Hostetler LLP, where trustee Irving Picard is a partner, acts as his counsel in the Madoff case. The trustee and his counsel recovered $1.09 billion for Madoff investors by June 30 and seek to recoup more than $13.7 billion from so-called feeder funds and related parties, according to a filing today in U.S. Bankruptcy Court in New York.
Twenty percent of the firm’s fee will be deferred until the Madoff brokerage has been completely liquidated, according to the filing. The law firm said it made a voluntary reduction of more than $111,000 by not charging for intra-office expenses including lodging, meals, airfare and other transportation.
“The trustee’s ability to call on the resources of B&H in such areas as corporate, real estate, bankruptcy, employment, tax, banking, litigation (and others) has been of material assistance in achieving results,” Picard said in the filing.
Most of the law firm’s time, or almost 20,000 hours, was spent assisting Picard as he investigated and administered the case and recovered assets, according to the filing. Work on litigation took 4,150 hours and customer claims required 445 hours.
The liquidation, which is being overseen by the Securities Investor Protection Corp., a government-chartered agency that charges fees to brokerages, has cost $45.9 million in administrative expenses, Picard told the judge yesterday. SIPC has paid the full amount and probably won’t be paid back, he said.
Madoff, 71, pleaded guilty in March and was sentenced on June 29 to 150 years in prison for using money from new clients to pay earlier investors. Picard has sued Madoff’s biggest clients, seeking to repay thousands of victims a portion of their claims.
The case is Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, 08-01789, U.S. Bankruptcy Court, Southern District of New York (Manhattan).