Business News
Madoff "winners" could still face lawsuits
Jul 26, 2010, 17:16 GMT
New York - Investors that benefited from Bernard Madoff's massive financial fraud may yet be dragged back to court to give up their earnings, a court-appointed trustee said Monday.
Thousands of people lost everything when Madoff's 65-billion- dollar pyramid 'Ponzi' scheme came crashing down at the height of the financial crisis. A lucky few managed to pull their money out of Madoff's firm for a profit before it collapsed in December 2008.
Irving Picard, appointed by a New York court to recover as much as possible for Madoff's victims, told The Wall Street Journal that he may sue as many as half of the estimated 2,000 investors that profited from the fraud.
'The people who made money, who got more, have made money at the expense of the people who didn't,' Picard told the US newspaper. He has until December to file the so-called 'clawback' lawsuits.
Madoff is serving 150 years in prison for his crimes, which involved paying above-market returns to his investors by using the incoming contributions of new investors. His victims included charities, celebrities and retirees around the world.
COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
