Judge tosses all but two of the bankruptcy trustee’s claims against the Wilpons

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The judge has issued a ruling in the bankruptcy case involving the Fred Wilpon, Saul Katz and the Bernie Madoff fraud.  Full reports aren’t out yet, but it sounds like a bit of a mixed-bag, but generally good news for Wilpon and the Mets:

  • Good news for Wilpon and the Mets: all but two counts brought by the bankruptcy trustee, Irving Picard, have been dropped;
  • Bad news for Wilpon and the Mets: one of the two claims that remain — fraud — could, theoretically speaking, still leave them on the hook for a $1 billion liability, should the trustee prove his case;
  • Good news for Wilpon and the Mets: there appears to be a higher burden of proof placed on the trustee than he had originally sought in order to make such a recovery: he has to prove that “the defendants willfully blinded themselves to Madoff Securities’ fraud” as opposed to having to show that they could have been aware of it had they exercised good judgment.

There is still risk here, but the risk of the massive, Mets-killing award of $1 billion is much lower, because the trustee will have to show some serious bad acts on the Wilpons’ and Katz’s part in order to get there, not just that they were generally unaware.  And while, yes, there are many people who are skeptical that sophisticated business people like Wilpon and Katz had no reason to investigate Madoff’s investments further, there hasn’t been any suggestion that I’m aware of that they ignored actual evidence that a fraud was afoot and played the see-no-evil, hear-no-evil trick with respect to it.

So where does that leave things? Both sides seem to have risk here. The trustee has had most of his case blown away and, while there still exists the potential for a home run, it’s no sure thing at all. The Wilpons still have that giant potential liability there, but it’s not imminent. This is generally where parties to a big money suit take a step back and try to settle. It might be the best course for both parties here.

Blue Jays place Aaron Sanchez on 10-day disabled list

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The Blue Jays placed right-hander Aaron Sanchez on the 10-day disabled list with a contusion in his right index finger, per a team announcement on Saturday. The assignment is retroactive to Friday. In a corresponding move, righty Marcus Stroman was activated from the DL (right shoulder fatigue) and will take the mound for the Blue Jays at 9:07 PM ET tonight.

Sanchez, 25, is in his fifth season with the club. He hasn’t looked his sharpest so far this year, going 3-5 in 15 starts with a career-worst 4.52 ERA, 5.1 BB/9 and 7.6 SO/9 through 79 2/3 innings. It’s not yet clear how long he’ll be sidelined, though he could miss as little as one turn in the rotation before returning to the roster in the next week or two.

Sanchez isn’t the only struggling starter in Toronto’s rotation, either. Per MLB.com’s Gregor Chisholm, the team placed southpaw Jaime Garcia on the DL (right shoulder tenderness) as well, with lefty reliever Tim Mayza scheduled to take his spot on the roster. In 13 starts this season, Garcia carried a 2-6 record, 6.16 ERA, 4.5 BB/9 and 8.2 SO/9 over 61 1/3 innings. Any further decisions pertaining to the rotation — including Tuesday’s starter against the Astros — have yet to be publicly addressed.