Some Madoff Investors Made Money—and Are Now Lying Low
Not everyone who invested with Bernard Madoff lost money.
Some longtime clients of the alleged architect of a $50 billion Ponzi scheme operated under the guise of a hedge fund actually did OK, by taking out money before the music stopped for expenses such as the purchase of a home or their children’s college education. Now, however, they are being advised by some lawyers to lay low, reports Reuters.
Instead of seeking possible reimbursement from the Securities Investor Protection Corp. or through litigation against those who recommended the investment, these relative winners could be smarter to try to stay off the radar screen of the trustee who is figuring out how to pursue the Madoff firm’s remaining assets—including potential “clawback” recaptures of purported profits paid to early investors, according to the news agency.
Otherwise, by pursuing a claim, such investors could provide the trustee with “a roadmap” for recapturing their assets, Reuters recounts.
“My advice so far is they should wait until more information is available,” New York attorney Brian Neville tells the news agency. But “many of these people are beside themselves with this decision.”
There is still time to ponder the situation further: the deadline for making an SIPC claim is March 4, Reuters reports. As discussed in an earlier ABAJournal.com post, however, it appears that those who aren’t on the trustee’s mailing list may have until July 2 to do so.
Related coverage:
Reuters: “Madoff trustee poring over hundreds of claims: SIPC”
Reuters: “Two US businessmen win a round in Madoff lawsuits”
Phildelphia Inquirer: “West Goshen widow’s riches-to-rags story”
