Malcolm H. Sage, Individually and in His Capacity as Partner or Joint Venturer of Sage Associates and Sage Realty v. Irving H. Picard, Trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC

Does an Article III Court have the power to reject the statutory definition of “net equity” as set forth in 15 U.S.C. Section 78aaa et seq. by employing the Madoff Trustee’s “Net Investment Method” (“NIM”) as a formula to calculate the net equity of a customer in contradiction of the plain text of SIPA?

If the Courts below have such power, did the District Court and the Court of Appeals nevertheless err in upholding the use of the Net Investment Method advocated by a SIPC Trustee to disallow Petitioner’s “net equity’ claim and clawback funds under circum­ stances where Petitioner maintained a traditional buy and hold stock brokerage account, did not relinquish control of his accounts to Madoff, but, instead, directed trading in specific securities in his account?