Victims in the multi- billion dollar ponzi scheme of Bernard Madoff are owed exclusively the money they invested with him originally and not the amounts listed on his claims according to a ruling by Manhattan bankruptcy judge on Monday.
Victim arguments that they were owed “securities positions” listed on Nov. 30,, 2008 were reject today by U.S. Bankruptcy Court Judge Burton Lifland. The ruling held to a "net equity" formula operated by a trustee handling the distributions of Madoff's assets.
The records from Madoff’s firm indicate that the sales of securities were never a part of the business despite claims nullifying any requests for profit generated from their exchange. In his ruling, the judged explained, "because securities positions are in fact nonexistent, the trustee cannot discharge claims upon the false premise that customers' securities positions are what the account statements purport them to be."
Last year the 71-year-old Madoff was sentenced to 150 years in prison for the operation of the ponzi scheme. Madoff had been using the funds of newer costumers to pay out older ones. At present more than $12,000 claims of involvement are being processed.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription
