The upcoming trial in the Madoff Trustee’s case against the owners of the New York Mets, scheduled to commence on March 19, 2012, promises to be interesting, as demonstrated by the following excerpt from the Trustee’s recent brief in opposition to the defendants’ summary judgment motion:
After more than fifteen years of investing with BLMIS, the Sterling Partners had by the early 2000s become hooked on Madoff’s guaranteed returns. There were so expectant of those steady, ten to fourteen percent returns, that they began to budget them into their business plans. They learned to exploit the Madoff returns in ingenious ways, using the returns they could generate from their BLMIS accounts to substitute in the place of disability insurance for their Mets players, and even to make the Madoff “vig” off players’ deferred compensation arrangements. The Sterling Partners had also over time grown dependent upon their Madoff returns as their primary source of liquidity, and income from BLMIS investments accounted for more than half of all of their projected necessary operating cash flow. There were times when the Sterling Partners could not even make payroll for the Mets if it were not for BLMIS.
Picard v. Katz, 11 Civ. 03605 (S.D.N.Y.), Docket #132 p. 1 (Feb. 16, 2012).