On July 28th, the Southern District of New York held that the Securities Investor Protection Act ("SIPA") trustee liquidating Bernard L. Madoff Investment Securities ("Madoff Securities") lacks standing to pursue common law claims against third parties who allegedly violated a duty to Madoff Securities' customers by failing to detect Madoff's fraud. According to the court, the trustee stands in the shoes of the debtor, not the creditors, is not a bailee under the common law, is not a subrogee as to third parties under SIPA, and is not an assignee of customer claims. Moreover, the trustee's claims are subject to the in pari delicto doctrine. Picard v. HSBC Bank PLC. On July 29th, Bloomberg summarized some of the implications of the decision. Implications. In a related development, the New York Times reported that the Government Accountability Office will investigate the trustee's decision to file clawback suits against Madoff investors who redeemed more money than they invested with Madoff. Clawbacks.