Irving Picard is seeking to block a $270 million state enforcement action brought by California Attorney General Kamala Harris against investment adviser Stanley Chais’ estate. Picard argues that pursuant to federal bankruptcy laws, only the trustee can recoup funds on behalf of Madoff’s former customers. Harris, in turn, contends that her lawsuit is an exception to the federal bankruptcy laws because she is exercising her police powers under state law.

On January 4, 2012, Madoff trustee Irving Picard filed a lawsuit in the U.S.

Dissatisfied with the ongoing multistate and federal efforts to reach a settlement agreement with major U.S. banks over unlawful foreclosure practices, Massachusetts Attorney General Martha Coakley indicated that her office was independently preparing to file several lawsuits. A number of U.S. states, along with the U.S. Department of Justice, have accused the five largest mortgage servicers, Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Ally Financial and Wells Fargo & Co., of failing to follow proper foreclosure procedures.