Judge OKs Subpoena Powers For Madoff Firm Trustee

The trustee, Irving Picard, had sought the authority from the bankruptcy court.

The trustee overseeing the liquidation of Bernard Madoff's brokerage firm was granted powers to subpoena witnesses and documents in a ruling by a federal bankruptcy judge on Monday.

The trustee, Irving Picard, had sought the authority from the bankruptcy court, contending that the vast scope of the alleged $50 billion fraud made it necessary for him to have the added powers to gather evidence and interview witnesses as part of the liquidation process.

U.S. Bankruptcy Judge Burton Lifland in Manhattan said in his written ruling that the trustee showed good cause for the request. The judge said the trustee must fully cooperate with the U.S. Department of Justice and any other federal agency investigating the trading firm.

Bernard L. Madoff Investment Securities is being liquidated following last month's arrest of the veteran money manager for securities fraud. Federal prosecutors accuse Madoff of running a long-standing investment scam that bilked clients of as much as $50 billion.