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December 29, 2011

Madoff Son Must Face Suit in Bankruptcy Court

"Bernard Madoff’s son Andrew must submit to a bankruptcy judge’s decision to permit a $198 million lawsuit to go forward because he sought that court’s protection when he filed a claim against his father’s estate, a federal judge said.

U.S. District Judge William Pauley in Manhattan last week declined to hear an appeal of the September decision in favor of Irving Picard, the trustee liquidating Bernard L. Madoff Investment Securities LLC, in his claim against Madoff family members including Andrew Madoff and the estate of Mark Madoff, who committed suicide in December 2010. Pauley’s written opinion was filed today in U.S. Bankruptcy Court in Manhattan.

'Because Mark and Andrew invoked the aid of the bankruptcy court by offering a proof of claim and demanding its allowance, they must abide by the consequences of that procedure,' Pauley said in his Dec. 22 decision, citing a U.S. Supreme Court ruling that also described limits to the power of bankruptcy judges."

Read more here.

December 29, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

December 28, 2011

Temporary Payroll Tax Cut Continuation Act of 2011

On December 23, 2011, President Obama signed into law HR 3765, the Temporary Payroll Tax Cut Continuation Act of 2011, extending the current 4.2% Social Security Old-Age, Survivors, and Disability Insurance (OASDI) tax rate for employees to wages paid between January 1, 2012 and February 29, 2012.  Please be aware of the following:

- Effective immediately, any payrolls processed with a check date between January 1, 2012 and February 29, 2012 will reflect the employee Social Security rate of 4.2% with a wage limit of $110,100.00.
- For 2012 payrolls processed prior to December 27, 2011, Social Security tax was withheld from your employees at the rate of 6.2%. Your employees will automatically receive a credit for any overpayment of Social Security tax with their first 2012 pay check processed on or after December 27, 2011.

The reduced tax rate may be extended through 2012. Congress and the White House intend to pursue further legislation to extend the reduced 4.2% OASDI tax rate through 2012. Employers will continue to pay Social Security tax of 6.2% up to the taxable wage limit for each worker ($110,100 for 2012), as well as the 1.45% Medicare tax, with no limit.

December 28, 2011 in Legislation | Permalink | Comments (0) | TrackBack

Three New Bankruptcy Judges

Three California federal bankruptcy judges set to retire are being replaced
by an attorney from Pillsbury Winthrop Shaw Pittman LLP, a partner from
Friedman Dumas & Springwater LLP, and a solo practitioner. The announcement
was made by the chief judge of the Ninth Circuit on Tuesday.

U.S. Bankruptcy Judge Ellen Carroll will be replaced by Pillsbury Winthrop
counsel Mark D. Houle, who will be sworn into the position on February 17
at the office of the Central District of California.

“Mr. Houle is an experienced practitioner who comes to the bench with a
thorough understanding of bankruptcy court operations,” Ninth Circuit Chief
Judge Alex Kozinski said in a statement Tuesday.

Mary E.Hammond, a partner from Friedman Dumas, will be taking over the
position of U.S. Bankruptcy Judge Edward D. Jellen on February 2. The
position is for the Northern District of California.

U.S. Bankruptcy Judge Whitney Rimel will be replaced by Frederick E.
Clement in the Eastern District of California when sworn in on the 16 of
March.

Houle has been employed by Pillsbury Winthrop since 2000, working in the
firm’s insolvency and restructuring group. He represented secured and
unsecured creditors, asset purchasers, and others in various
bankruptcy-related cases at the firm.

Houle worked as an associate at Winthrop Couchot PC before he joined
Pillsbury Winthrop. At the firm of Winthrop Couchot PC, Houle represented
Chapter 11 creditors’ committees, debtors, and Chapter 7 trustees. Prior to
that decision, Houle worked as a clerk for bankruptcy judges in the Central
District of California.

Houle earned a bachelor’s degree from Salem State College in Salem,
Massachusetts. Houle earned his law degree from Boston College Law School.
Houle is also a veteran of the U.S. Air Force and Massachusetts Air
National Guard.

Hammond was hired by Friedman Dumas in 2003 and was made a partner of the
firm in 2008. Hammond’s practice includes commercial and bankruptcy law.
She particularly focuses on business debtors, trustees, and secured and
unsecured creditors. Hammond typically represents Chapter 9 and Chapter 11
debtors. Hammond was an associate at Murphy Sheneman Julian & Rogers, which
is now Winston & Strawn LLP, before she joined Friedman Dumas. She was a
clerk for Judge Jellen from 1998 to 2000 and served as a legal assistant
from 1996 to 1998 for the North Carolina General Assembly. As a legal
assistant, she worked for the Senate president pro tempore and
Appropriations Committee co-chair.

Hammond earned a law degree from the University of North Carolina School of
Law and earned a bachelor’s degree from Duke University.

Clement has been practicing law since 1993 in Redding, California. Clement
earned a bachelor’s degree from Westmont College and a law degree from the
University of California, Hastings College of the Law.
Click below to see original article:

http://www.jdjournal.com/2011/12/26/three-new-bankruptcy-judges-for-california-announced/

Regards,
Daniela Romero, Esq.

December 28, 2011 in Judicial Announcements | Permalink | Comments (0) | TrackBack

December 27, 2011

Your Legal Rights Radio Program

Leon Bayer, (aka The Bankruptcy Blogger, http://www.bankruptcyblogger.org/) is a Certified Bankruptcy Specialist by the State Bar of California and will be interviewed live on Public Radio station KALW, San Francisco, Wednesday, January 4, 2012 from 7:30 PM to 8:30 PM on the widely acclaimed legal affairs program, "Your Legal Rights." The radio program is sponsored by the State Bar of California, and hosted by Chuck Finney. The show can be heard live on the Internet, at http://www.kalw.org/

December 27, 2011 | Permalink | Comments (0) | TrackBack

'Basketball Wives' Star Sued for Helping Blow NBA Star's Fortune

"Evelyn Lozada -- one of the stars of 'Basketball Wives' who was once engaged to former NBA All-Star Antoine Walker -- is being sued for allegedly receiving hundreds of thousands of dollars illegally.

The story is shocking.  Walker raked in a whopping $110 million during his NBA career, in addition to untold millions in endorsements and other deals ... and he blew ALL OF IT and a lot more.

Walker filed for bankruptcy last year, and now the bankruptcy trustee smells a rat.  It seems Walker gave Lozada $560,000 when he already knew he was going belly up.  The trustee has sued Lozada, claiming the transfer was fraudulent -- an attempt to hide money from legitimate creditors."

Read more here.

December 27, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack