Investors press ahead for Madoff’s personal assets

In a move to ensure that all of jailed swindler Bernard Madoff’s personal wealth is used to pay his defrauded customers, some investors filed court papers on Monday to force him into bankruptcy.

Their lawyers have argued that making Madoff bankrupt would make it easier for victims to recover any Madoff-linked assets that have been transferred to family members or third parties.

The next step will be another petition to the court for the appointment of a trustee to oversee the personal assets of Madoff, who pleaded guilty on March 12 to running a $65-billion fraud over 20 years, bilking thousands of customers from big banks to charities to small investors.

A trustee is already working to oversee the winding down and recovery of assets from Madoff’s firm to distribute the proceeds to former customers.

Madoff and his outside accountant are the only people charged in the case, but US prosecutors are investigating who else might have been involved in the biggest fraud in Wall Street history.

Madoff is in jail pending sentencing in June.

Monday’s filing in US Bankruptcy Court in New York was made on behalf of five investors claiming $64-million, according to court papers. A federal judge last week opened the door for the petition by reversing his December ruling preventing any such legal action.

The US Securities and Exchange Commission, US prosecutors and the court-appointed trustee winding down the brokerage firm objected to the efforts of these investors.

They argued that it would lead to unnecessarily high
administrative costs and confusion. The SEC said authorities already are working to ensure that proceeds of any Madoff assets they recover will be distributed to bilked customers.

A lawyer for the five investors said he wanted to try to make sure no assets slip through the process.

”The two trustees will sit down and work out a protocol,” said the lawyer, Jonathan Landers. ”We trust they will cooperate.”

On March 17, US prosecutors signalled their intent to ask for $31,5-million from loans to Madoff’s sons and $2,6-million worth of his wife Ruth’s jewellery. An earlier filing sought that Madoff and his wife forfeit more than $100-million worth of homes, cars, boats, securities and valuables, some of which have already been seized by US authorities. – Reuters

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Grant Mccool
⚽️Football: RBNY, Liverpool. gegenpressing; STH Red Bull Arena. Maplewood, NJ. Long-time Reuters journalist (not soccer). Opinions my own.⚽️ Grant Mccool has over 396 followers on Twitter.

Related stories


Already a subscriber? Sign in here


Latest stories

A female condom can take sexual pleasure to new heights

Internal condoms not only offer protection, they increase the user’s control and the rings tickle the clitoris and penis

Russia’s invasion of Ukraine could be firestarter of global economic...

Developed countries could do much to help counterparts in the developing world weather the current storm

Zuma corruption trial on hold as court waits for word...

The Pietermaritzburg high court was surprised by the delay in Bloemfontein but said it would likely not be the last

SA’s endemic corruption requires a ‘biting’ response

Beneficial ownership transparency (BOT) can help tackle corruption, reduce investment risk and improve national and global governance, but implementation remains ‘a sad story’

press releases

Loading latest Press Releases…