Innocent Madoff investors must pay back profits, court rules – IOTW Report

Innocent Madoff investors must pay back profits, court rules

FOX:

Investors who profited from Bernard Madoff’s massive Ponzi scheme even though they knew nothing of it must still pay back their profits, an appeals court decided Thursday.

The 2nd U.S. Circuit Court of Appeals in Manhattan upheld lower-court decisions in cases filed by Irving Picard, a court-appointed trustee who has recovered money for cheated investors for over a decade.

Madoff, 82, is serving a 150-year prison sentence imposed after he pleaded guilty to federal charges in 2009.

His bid to be released early on grounds that he is dying was rejected this year. Thousands of investors lost billions of dollars through his multi-decade fraud. more here

8 Comments on Innocent Madoff investors must pay back profits, court rules

  1. Be careful with your money.
    Don’t put all your money in one place.
    – Spread it across two or three big firms
    – Put long passwords on each account.
    – Set up two level verification on withdrawals

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  2. What a colossal mess. Remember that financial analyst, Harry Markopolos, who tried for years to expose Bernie Madoff as a Ponzi Schemer? If they had listened to him, thousands of lives would have been saved from financial ruin.

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  3. It’s the same principle that applies to Bankruptcy filings, with the “preferential treatment” rule. In that case, if a debtor knows that he is going to file bankruptcy eventually but wants to pay his friends, or “preferred creditors”, what he owes them before he files, then the law sets a a period of usually 90 days (“claw back” period) in which anyone who receives a payment within that time must return it to the bankruptcy trustee.

    It sounds like this is the same concept with “ill-gotten” gains.

    @Anonymous September 27, 2020 at 4:08 pm – that is a very good observation

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