New York, NY – Investors whose pockets may have been picked to the tune of $50 billion by Bernard Madoff have to face the possibility of giving back money if officials try to go after “false profits” paid out by the accused Wall Street Ponzi schemer.
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In a legal action known as “clawback,” the special trustee handling the bankruptcy of Madoff’s firm has the power to try to recover the illusory profits reported and in some cases paid out to investors.
Officials will be seeking to recover false profits from those who received them over the years, attorney David Sheehan, who is assisting trustee Irving Picard, told scores of Madoff investors who met with him in Manhattan.
By its nature, a Ponzi scheme pays early investors with money taken from later investors. While investors may be innocent of knowing about Madoff’s alleged scheme, the profits they got were fictitious, Sheehan said.
Let them go after the “fees earned on fictitious profits” earned by investment “advisors”
This is an appropriate and fair way to deal with those who got out early. These people are not being asked to give up money they were entitled to. They are being told to give back money that was rightfully other people’s money. If you buy a stolen car, the police will take away the car and give it back to the rightful owners without giving you a dime. Everyone should share the pain equally.
Madoff has dealt America’s richest Jews and charities a death blow which will take decades to recover and probably not in the life of Today’s baby boomers.
The charities and individuals who now face SIX YEARS Statute of Limitation for returning all and any money they received even their original principal bodes ill for all Madoff victims. Many should declare Bankruptcy as soon as they receive subpenas.
This litigation will take years and the lawyers will make fortunes long after Madoff passes on. But all the people who received anything in the last 6 years need legal advice immediately except small recipients where the legal fees will exceed the amount of money to be retrieved. remember this money is from dovor habo m’issur.
chutzpah we got shafted and now we get punisht amazing
that sucks.go out and spend it.
this is the law of the jungle
The gov’t is potentially liable in billions of capital gains taxes collected on these fictious profits.
What is even more shocking, is how many charities begging for our money had 100’s of millions to invest.
Anyone who received a portion of their initial investment back whether in principal or in the form of an “investment dividend or profit” should not be subject to return such payments. Such false profit equates to a return of principal rightfully entitled to. Anyone that received back more than they invested should be subject to repay the false profit.
This is unbelivable, look what this mamzer caused.