Nothing like $65 Billion worth of Investor Protection for the Ultra-Rich. All they needed was for Bernie Madoff to Plead to Fraud.
Madoff did not commit fraud. He made some very heavy investment bets that lost big. He went to his investors and told them the bad news. They were extremely upset.
Madoff then said that there is another route we can take. If the investment losses are determined to be as a result of fraud, then the law provides for full reimbursement at the expense of the taxpayers.
So they chose this route, and Madoff went into court and claimed that he was running a Ponzi scam instead of legitmate investment losses. Normally, the court must then open the books to determine what restitution is required.
However, once a fraud is legally determined, the books are closed and the court must pay out the full claims of the victims. Madoff thus immediately plead guilty to fraud.
Now, the investors are demanding more than their principle investments.
They are demanding that they be paid all the returns originally promised by Madoff. As the books are closed, they will get paid far in excess of their original principal.
And you and I, the taxpayers, are going to pay for this.
Madoff will do easy time in millionaire's prison and in a few years when memories fade should be able to arrange for early release and a cushy retirement.
http://www.businessweek.com/news/20...ruling-on-method-for-paying-fraud-claims.html
" March 23 (Bloomberg) -- Former customers of Bernard Madoff, who conducted the biggest Ponzi scheme in U.S. history, have appealed a judges decision that lets the liquidator of Madoffs business reject years worth of fake profit from the fraud when calculating victims claims for repayment.
At least 10 notices of appeal have been filed since March 18, including one yesterday by Lawrence Elins and Malibu Trading & Investing LP.
U.S. Bankruptcy Judge Burton Lifland, overseeing the bankruptcy of Madoffs defunct business, is allowing the victims to appeal immediately to the U.S. Court of Appeals in New York, meaning they wont have to wait until trustee Irving Picard denies a claim and wont have to first appeal to the federal district court.
Liflands March 1 ruling will determine how much money, if any, victims may get from the industry-financed Securities Investor Protection Corp., which must repay as much as $500,000 for each qualifying claim. Thousands of customers objected to Picards methodology, arguing he wrongfully set claims based on their cash deposits minus withdrawals instead of using the amounts on Madoffs final account statements. Lifland sided with Picard.
Who Gets What
Picard, hired by SIPC to repay victims of the $65 billion fraud, has said that using account statements to set claims would let the con man decide who gets what, and include profit from trades that didnt really happen."
Madoff did not commit fraud. He made some very heavy investment bets that lost big. He went to his investors and told them the bad news. They were extremely upset.
Madoff then said that there is another route we can take. If the investment losses are determined to be as a result of fraud, then the law provides for full reimbursement at the expense of the taxpayers.
So they chose this route, and Madoff went into court and claimed that he was running a Ponzi scam instead of legitmate investment losses. Normally, the court must then open the books to determine what restitution is required.
However, once a fraud is legally determined, the books are closed and the court must pay out the full claims of the victims. Madoff thus immediately plead guilty to fraud.
Now, the investors are demanding more than their principle investments.
They are demanding that they be paid all the returns originally promised by Madoff. As the books are closed, they will get paid far in excess of their original principal.
And you and I, the taxpayers, are going to pay for this.
Madoff will do easy time in millionaire's prison and in a few years when memories fade should be able to arrange for early release and a cushy retirement.
http://www.businessweek.com/news/20...ruling-on-method-for-paying-fraud-claims.html
" March 23 (Bloomberg) -- Former customers of Bernard Madoff, who conducted the biggest Ponzi scheme in U.S. history, have appealed a judges decision that lets the liquidator of Madoffs business reject years worth of fake profit from the fraud when calculating victims claims for repayment.
At least 10 notices of appeal have been filed since March 18, including one yesterday by Lawrence Elins and Malibu Trading & Investing LP.
U.S. Bankruptcy Judge Burton Lifland, overseeing the bankruptcy of Madoffs defunct business, is allowing the victims to appeal immediately to the U.S. Court of Appeals in New York, meaning they wont have to wait until trustee Irving Picard denies a claim and wont have to first appeal to the federal district court.
Liflands March 1 ruling will determine how much money, if any, victims may get from the industry-financed Securities Investor Protection Corp., which must repay as much as $500,000 for each qualifying claim. Thousands of customers objected to Picards methodology, arguing he wrongfully set claims based on their cash deposits minus withdrawals instead of using the amounts on Madoffs final account statements. Lifland sided with Picard.
Who Gets What
Picard, hired by SIPC to repay victims of the $65 billion fraud, has said that using account statements to set claims would let the con man decide who gets what, and include profit from trades that didnt really happen."
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