Most of the people who say they lost money with Bernard Madoff have had their claims denied because they invested with the con man indirectly or withdrew more money than they put in.From Bloomberg article, "Most Madoff Victims Denied SIPC Repayments a Year After Arrest" by Erik Larson.
Trustee Irving Picard has turned down about 9,900 of the 11,500 people whose claims he has analyzed, with another 4,500 cases still to be looked into. The 1,600 people whose claims he has approved have losses totaling $4.69 billion, though they’ll get at most $500,000 to begin with....
Saturday, December 12, 2009
How Much Will Madoff Victims Collect?
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“He’s [Picard] violating a federal statute which mandates that customers be paid based on their last statements,”
ReplyDeletePretty much says it all, as SIPC is running an insurance scam, with totally inadequate reserves to cover contingent liabilities, for decades. Sound like AIG's credit default swaps, doesn't it?
Hum ... convinced me! I'm going to set up an offshore reinsurance company, charge premiums totaling, in the aggregate, tens if not hundreds of millions of $dollars, and pray that I will not have destructive claims. If I do, then I merely deny and/or declare bankruptcy. And they'll never find me because I used third and fourth degree distance nominees to own my reinsurance firm.
Thank you SIPC & AIG for showing me the light of free enterprise making a $buck, and thank you SEC for defining the definition of negligence!