Steve Simkin might have thought it shrewd to keep the Madoff investments in his divorce from Laura Blank (after all, where else do you get that kind of interest?) After the Ponzi king confessed his sins, however, and Mr. Simkin discovered his assets were worthless, he asked the New York trial court to set aside the property division. The trial court denied Simkins petition and he appealed. The appellate court reversed the denial. At the appellate court, Ms. Blank argued that he could have redeemed what he believed to be his account in excess of its supposed value as of the 2004 valuation date the parties had chosen. The court was unpersuaded pointing out that Mr. Simkin never had an account with Madoff. Indeed, by Madoffs own admission, there were no accounts within which trades were made on behalf of investors. Poor Simkin. Next time he gets divorced, I bet he bargains to keep the marital home.
Simkin v. Blank, N.Y. App.Div. No 3016101501/09 (January 4, 2011)