News, Bad News for Madoff Victims: Too Many Claims, Not Enough Money (case, people)
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Many of the victims of Ponzi scammer Bernard Madoff's $65 billion fraud are in dire straits, and there may not be enough money to go around, according to a report filed in U.S. Bankruptcy Court in the Southern District of New York yesterday.
They should be suing his co-conspirators, his auditors, the sec, and the irs, etc. they are the ones that closed their eyes allowed the scheme to happen.
I still don't understand...the way I see this along with putting your money in any investment bank is a risk. If they lose your money then they lose your money. I always thought investing was the same as gambling. An when you go tot Vegas or Atlantic City and lose money you don't exactly get your money back. Am I missing something? Not trying to be a smart-ass but I just really don't understand why these people are able to get their money back. I remember back when the employees of Enron lost everything and I don't think they ever got anything.
mgt04, Enron and Maddoff different situations but I understand your points. This guy took people's money, acted like it was in some sort of account, increasing and decreasing over time with the market. He never put their money where they thought it was going which was in his pocket.
Anyways, I never believed in puttng 1 cent towards investment banking. My hubby until now really believed in them. Thank goodness he woke up and smelled what is bruing, we know too many people who lost what was in their retirement plan.
I still don't understand...the way I see this along with putting your money in any investment bank is a risk. If they lose your money then they lose your money. I always thought investing was the same as gambling. An when you go tot Vegas or Atlantic City and lose money you don't exactly get your money back. Am I missing something? Not trying to be a smart-ass but I just really don't understand why these people are able to get their money back. I remember back when the employees of Enron lost everything and I don't think they ever got anything.
Very true.
Imagine if these "victims" had not let their greed wrap them up...the millions they either had or panhandled from others to get into the club looks pretty cushy if it had sat in some old joe schmoe bank account by comparison. Oh, but that wasn't uppity enough.
I still don't understand...the way I see this along with putting your money in any investment bank is a risk. If they lose your money then they lose your money. I always thought investing was the same as gambling. An when you go tot Vegas or Atlantic City and lose money you don't exactly get your money back. Am I missing something? Not trying to be a smart-ass but I just really don't understand why these people are able to get their money back. I remember back when the employees of Enron lost everything and I don't think they ever got anything.
If you invest your money in a fund and they lose it, you have no recourse -- which is what happened with Enron -- they pulled fraud and that made their stock worthless. That's on you, the investor.
From my understanding, since Madoff was "running a fund", he had to be registered with the SEC and file annual reports with them. The SEC is sort of the overseer of funds. And as such, there is an SEC version of FDIC.
But the SEC didn't audit Madoff's fund, he was allowed to put out phony prospectuses which mislead his investors, and basically the SEC allowed him to.
Bernie didn't lose their money by making their stock worthless. He stole their money, and claimed to invest it for them.
And the SEC stood by and let it happen.
These people can file SEC insurance claims. But it's only good for so much money (like FDIC) and anything over that is -- lost.
The only money Madoff's victims will get is what he has left in the "fund" and what is realised after calling in whatever assets of his they could get hold of.
Now, they may well have a case against the SEC and his auditor for negligence. His auditor should have liability insurance but who knows.
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