Madoff Case Is Assigned to Judge Bernstein

The U.S. Bankruptcy Court in Manhattan has announced that Judge Stuart M. Bernstein will take over the wind-down of Bernard Madoff’s investment firm amid the unexpected death of Judge Burton Lifland.

The case has been ongoing since December 2008, and with the recently announced J.P. Morgan Chase & Co. settlement, more than 55% of funds lost in the $17.5 billion Ponzi scheme have been recovered.

Judge Bernstein was appointed to the bench in 1993 and has presided over the bankruptcy cases of business jet manufacturer Hawker Beechcraft Inc., newspaper publisher Journal Register Co. and one-time Penthouse magazine publisher General Media Inc. He has also served as chief judge.

Judge Lifland’s other pending cases have been assigned to Chief Judge Cecelia G. Morris for now, Vito Genna, clerk of the U.S. Bankruptcy Court in Manhattan, told Bankruptcy Beat Wednesday.

In addition, Judge Robert Grossman of the U.S. Bankruptcy Court in Central Islip, N.Y., has been brought on to help with the Manhattan case load. Mr. Genna said that Judge Grossman will step in for Judge James M. Peck, who is retiring at the end of January, although the Lehman Brothers case, which was before Judge Peck, has been assigned to Judge Shelley Chapman. Judge Grossman will also continue to hear cases at the court in Central Islip, Mr. Genna said.

Judge Grossman became a judge in 2008 and prior to that practiced at Duane Morris LLP and Arent Fox LLP. He began his career with the U.S. Securities and Exchange Commission’s Division of Enforcement.

In 2011, the judge issued a scathing opinion of the Mortgage Electronic Registration Systems, or MERS, in the Chapter 7 case of New York homeowner Ferrel Agard.

The U.S. Bankruptcy Court in Manhattan is currently advertising for two openings. In addition to Judge Peck, Judge Allan L. Gropper is retiring at the end of October.

Write to Stephanie Gleason at [email protected]. Follow her on Twitter at @stephgleason.