Madoff trustee's $900 million lawsuit goes to district court

A $900 million lawsuit by the liquidator of Bernard Madoff's firm against Frank Avellino and other defendants will be reviewed by a district judge, according to a decision filed in Manhattan court yesterday.

Judge Jed Rakoff said he will review the Madoff trustee's right to recover so-called fraudulent transfers, and whether his allegations “plausibly suggest” willful blindness to the Ponzi scheme.

Avellino & Bienes, a Florida investment firm, funneled money to the con man, trustee Irving Picard alleged in his suit.