Friday , January 22 2021

Madoff customers recover 70% of the investment 10 years later




Steven Spielberg, John Malkovich and Kevin Bacon are just three of the most famous faces of Bernard L. Madoff, but the total number of people affected has not been known. Yes, you know the amount of committed amounts: US $ 65,000 million. Only today marks 10 years for the arrest of New York funding, as it unveiled the largest pyramid scheme in US history.

Talking about the amount of money committed does not end up being an entelechy. The 65,000 million. US $ were the assets allegedly administered by Bernard L. Madoff Investment Securities LLC, CFO in December 2008, when fraud was revealed following the termination of Madoff's children.

On the same day of the arrest, the Guarantee Fund of American Asset Managers (SIPC) ordered a professional liquidator to try to get as much money as possible from Madoff's customers. The chosen was the lawyer Irving H. Picard.

Picard has under a judicial review spent a decade of exhaustive forensic analysis of who put money in Madoff's leader who pulled funds … and filed lawsuit worldwide. Your results to date are excellent.

After analyzing the profound movements of the affected, Picard and his team found that Madoff's customers had invested $ 19,000 million (far from the fictitious 65,000 million shown in the balances).

When the amount to be recovered was fixed, the liquidator focused on invoking the customers who had withdrawn money from the manager before the thymus was uncovered.

"In the pyramid system created by Madoff, the value of the investments and balances received by customers each month was fictitious. Therefore, it was decided that the claims were based on the actual deposits that discounted cash payments. The license accepted This method, "Picard explains in a statement issued two weeks ago.

"Some of Madoff's customers never took money while others received large amounts. But it was not investment money but money stolen by Madoff from other customers. Some of my mandate has focused on asking these customers to return the money they have has charged, "says the lawyer.

Of the 19,000 million targeted, the liquidator has already recovered $ 13.3 billion (70%). Picard estimates that in the coming years he will be able to get another $ 4000 million, which would turn to a 90% recovery rate.

When the liquidator came to work in 2008, liquid assets, bonds and equities did not reach up to 650 million euros. After hiring a battalion of lawyers, he filed lawsuit against banks and fund managers who for years had redirected their own customers to the Madoff leader, with the promise of high returns. The Spanish Banco Santander was the second largest investor who hit, with $ 3,500 million from its private banking customers.

The pyramid system fell very quickly. Madoff pointed out, and only six months after his arrest, he was sentenced to 150 years in prison.


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