Madoff Victims May Have to Return 6 Years of Profits, Principal

[marmar]

Madoff Victims May Have to Return 6 Years of Profits, Principal
By Carlyn Kolker, Tiffany Kary and Saijel Kishan


Dec. 23 (Bloomberg) -- Like some of Bernard Madoff’s clients, a Florida restaurant owner was lucky enough to withdraw part of his investment before the money manager allegedly confessed to a $50 billion Ponzi scheme. Now he’s worried he might be asked to give it back.

The 53-year-old investor, who asked not to be identified to protect his stake, took out about $600,000 this year from his $1.5 million account, using some of it to pay down a mortgage. He and other Madoff clients who withdrew funds as long as six years ago may be sued on behalf of other victims to return profits and even principal, securities and bankruptcy lawyers say.

“Right now there are Madoff winners and Madoff losers,” said Lynn LoPucki, who teaches bankruptcy law at Harvard University. “Before this is over there will be nothing but Madoff losers.”

Clients of Madoff had about $36 billion with his firm, according to a Bloomberg tally that may include some double counting. Before his arrest on Dec. 11, Madoff, 70, confessed to employees that his “giant Ponzi scheme” may have cost as much as $50 billion, according to an FBI complaint. His misconduct may have stretched back to at least the 1970s, two people familiar with the government’s inquiry of Madoff said last week.

The Florida investor, who first gave his money to Madoff five years ago, said he had no hint of fraud and would go to jail rather than give up the amount he took out. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a3kFmYaaw5sY&refer=home

[tom_paine]

1. Madoff, after a short stint in Club Fed, complete with conjugal-hooker visits

will retire to collect most of the money he stolen from the offshore accoutns where he hid it.

I think it is wholly symbolic of what our nation has become (and I am still praying and hoping for what is now becoming a longshot that Obama actually WILL change anything of substance, let alone restore our System of Checks and Balances) that his earlier victims shall pay off his later victims while he himself enjoys a long and full life, only briefly interrupted by a short stay at Club Fed, after which he will be relleased early for "good behavior".

Aristocrats are ALWAYS released from prison early, as soon as the cameras are turned away...which is always soon in post-Bushler America.

Sad as it is, can you think of a more fitting situation that literally SCREAMS, "I am a metaphor for the nation! I AM America!" ?

I can't.