Madoff Family May Keep $82 Million Under Ruling

[dipsydoodle]

Source: Bloomberg News

Bernard L. Madoff’s family would keep about $82 million of “other investors’ money” under a ruling that limited a bankruptcy trustee to claiming from the owners of the New York Mets only two years of withdrawals from the Ponzi scheme, according to a court filing.

The confidence man’s family took out $141 million in the six years before Madoff’s firm went bankrupt in 2008, of which less than $59 million was taken in the two years before the bankruptcy, trustee Irving Picard said in a filing. Many other investors are trying to hang onto “stolen” money from fictitious trading that belongs to customers who took losses in the fraud, he said.

Picard wrote about the Madoff family in court papers filed after U.S. District Judge Jed Rakoff told him to explain why another investor, James Greiff, shouldn’t keep money he says he took “in good faith” from the Ponzi scheme. Rakoff’s Madoff caseload includes Picard’s suits against the Mets owners and Greiff.

The trustee’s argument “is good for two reasons,” said Nancy Rapoport, a bankruptcy-law professor at the University of Nevada, Las Vegas, in an e-mail. “It puts the amount of money at risk front-and-center, and it explains how easy it would be for people to hide behind fake securities transactions to circumvent bankruptcy law.”

Read more: http://www.bloomberg.com/news/2011-10-27/madoff-family-may-keep-82m-under-mets-ruling.html

[xchrom]

1. hmmmmph. nt

[bloomington-lib]

2. That's stolen money

[Frank Cannon]

3. Unfreakingbelievable.

Everyone and anyone involved with this family and their scam, if not in prison, needs to be sitting on a turned-over milk crate eating cold beans out of a can by candlelight.

[Jamastiene]

4. Un-fucking-believable.

There was a recent interview with Bernie Madoff in prison. The bastard is cocky as ever, not bothered by the fact that he destroyed so many people. I wish the fuckhead wasn't in prison in my state. I don't like knowing he is in my state at all.

[Scuba]

5. Justice in America. n/t

[Lance_Boyle]

6. Madoff family may find their kneecaps missing if they ever venture out in public.

Time to hit the fuckers back.

[City Lights]

7. Awww, ain't that sweet!

How nice for the thief's family.

Don'cha just love our system of "justice?"

[reggie the dog]

8. they ought to line up the whole family against a wall and shoot them

[24601]

28. And any candidate who ever received money from any of them

should be jailed, tortured and executed.

Oh, maybe not - I forgot this is the USA, not the USSR after the revolution.

[reggie the dog]

31. I was more thinking after our revolution here in France

[kestrel91316]

35. [phone]. I know. Bad me.

[w0nderer]

9. many contact team sports have the expression

'it settles by ref or on the field'

as in, either the referee blows a 'penalty' or the players themselves will settle it on the field behind the ref's back

i don't think a lot of time is left before we start getting 'field justice' in the world

[Owlet]

10. Crime pays

[toddwv]

16. As long as your rich and well-connected.

[Hassin Bin Sober]

26. As long as you steal enough.

My dad used to tell the story of a banker, who contacted a lawyer knowing he was about to be discovered for embezzling $10,000 dollars ( a lot of money in those days). The lawyer told the thief to go back and get another $10,000 for the lawyer's fee and he would see what he could do.

Guess who is defending Madoff.

One of his victims.


http://www.inthesetimes.com/ittlist/entry/8003/madoffs_lawyer_one_of_his_victims/
And there's a crazy little nugget of info at the bottom of the story, which I somehow missed until now: the family of Madoff's lawyer, Ira Sorkin, had invested $900,000 with Madoff. And Madoff has waived any potential conflict of interests stemming from this quite pertinent financial relationship.

[N7Shepard]

11. Oh dear, how will they get by?

[KamaAina]

21. They might have to think about trading the 100-foot yacht in for an 80-footer

:sarcasm:

[Javaman]

12. yeah, there's not two sets of laws in this nation.

just keep repeating that to yourself when you go to the grocery store.

[No Elephants]

13. So, he's in jail for bankrupting so many, but he's still in the 1%. God Bless America, huh?

[w0nderer]

18. but but but he worked so HARD to con all those other people

:sarcasm:

[raccoon]

14. Makes you want to throw up, doesn't it? K&R. nt

[valerief]

15. Of courrrrrrrrrrse! The rich NEVER lose. nt

[graywarrior]

17. WTF

[sarcasmo]

19. He didn't earn that 82 million. A different set of rules for the top 1% especially when they steal.

[durablend]

20. Guess that explains why

Their attempt at suicide failed...still a shitload of money so why risk someone else ending up with it.

[The Second Stone]

22. They can still be sued for that money by the people

defrauded. As long as they sue within the statute of limitations after learning about the fraud.

[former9thward]

30. No, they can't actually.

They can't sue a ruling of the bankruptcy court.

[Zorra]

23. One more good reason to support and participate in OWS. nt

[hugo_from_TN]

24. If you read the article, you see that Picard is trying to reverse the ruling

The judge ruled that an 'innocent investor' can keep money withdrawn from his account prior to two years before the discovery of the ponzi scheme due to securities laws against 'clawbacks'. Picard is basically telling the judge that that ruling is wrong and would result in Madoff's family keeping a lot of money which they don't deserve.

Basically a lot of investors who thought it was all legit and withdrew money at different times are fighting to prevent from having to pay back all of the money they withdrew except for the initial investments. The filing by Picard here is a good thing.

[DeSwiss]

25. Nancy, Nancy, Nancy.....

''The trustee’s argument “is good for two reasons,” said Nancy Rapoport, a bankruptcy-law professor at the University of Nevada, Las Vegas, in an e-mail. “It puts the amount of money at risk front-and-center, and it explains how easy it would be for people to hide behind fake securities transactions to circumvent bankruptcy law.”

That's what they've been doing all along. Not just in this case with the bankruptcy laws. Fraud and theft laws as well. It's ALL a Ponzi Scheme. Haven't you been paying attention???? And you call yourself a ''professor???''


- You need to start listening to Max Keiser......

K&R











http://www.youtube.com/watch?v=hklqkwyISuk">''All tyranny needs to gain a foothold, is for people of good conscience to remain silent.'' ~ Thomas Jefferson.

[JI7]

27. Seeing how his Wife claims they tried to commit suicide i'm sure she will return it to the victims

[Rex]

29. SEE FOLKS! CRIME DOES PAY!

This country SUX.

[jmowreader]

32. I think only some of the investors should get their money back

The pension funds definitely should--too many innocent people, who were depending on the pension fund managers to do the right thing, got severely damaged by Madoff.

Individual investors? Maybe, once the pension funds are made whole. This is Madoff's description of his "hedge fund," as found in Harry Markopoulos' memo at http://math.nyu.edu/faculty/avellane/madoffmarkopoulos.pdf:

"The Fund seeks to obtain capital appreciation of its assets principally through the utilization of a nontraditional options trading strategy described as "split strike conversion," to which the Fund allocates the predominant portion of its assets... The establishment of a typical position entails (a) the purchase of a...basket of (stocks) that are intended to highly correlate to the S&P 100 Index; (ii) the sale of out-of-the-money S&P 100 Index call options in an equivalent contract value dollar amount to the basket of (stocks); and (iii) the purchase of an equivalent number of out-of-the-money S&P 100 Index put options."

This is supposed to return 12 percent per annum.

Markopoulos says this won't return much better than T-bills. What Madoff has done, if he actually did this instead of just running a Ponzi scheme, is to hedge the stocks in his portfolio with a protective index collar--a nice conservative mutual fund strategy. The people I think should bear the brunt of paying off the pension funds are the individual "accredited investors" he attracted. These guys are supposed to know how to invest money, okay? Madoff offered what is for all intents and purposes just a mutual fund, and claimed it would return 12 percent. NO mutual fund returns 12 percent, okay? A hedge fund that's shorting everything in the fucking world will pay 12 percent, maybe, but not what Madoff was selling. And the masters of the universe, who are SUPPOSED to know what a mutual fund looks like, should have known that.

You know how they say a fool and his money are soon parted? Apparently, if it's a fool and a couple million dollars, the fool gets it back.

[Hosnon]

33. Reporters should not use "may" in this context. It is ambiguous. nt.

[unkachuck]

34. only a paltry 82 million?....n/t