NEW YORK — The trustee in charge of untangling the mess brought on by the Bernard Madoff scandal told investors Friday there was no indication the disgraced money manager bought securities for his clients.
"We have no evidence to indicate securities were purchased for customer accounts," said Irving Picard, the court-appointed trustee overseeing the liquidation of Madoff's assets.
He told a meeting for investors that he has recovered $650 million so far and noted that victims could qualify for up to $500,000 in funds from the Securities Investor Protection Corp., also known as the SIPC.
Madoff was arrested in December after investigators said he confessed to his sons that he had swindled investors of $50 billion in a Ponzi scheme. The 70-year-old former Nasdaq chairman remains confined to his Manhattan apartment under house arrest.
Picard detailed the history of the case for the group and how claims will be processed. He said his office has received 2,350 claims so far and expects the number to double. He also said the deadline for submitting claims is July 2.
At the hearing, David Sheehan, a lawyer working for Picard, called the alleged fraud "a Ponzi scheme where no stock was purchased."
Sheehan also said the SIPC will be trying to recover "false profits" earned by some investors.
"There wasn't any stock bought or sold," he said. "It was all just made up. ... You got somebody else's money."
When I first read this headline, I just froze. I stared at it for a few moments. And let it digest.
There is no indication that stocks were EVER purchased.
There is NO indication that stocks were EVER purchased.
This isn't a case of where the man had a few good years of investing, but then things turned south as he chose bad investments.
He didn't purchase anything.
He straight up STOLE that money.
How does one run a company of this magnitude without FILING PAPERS WITH THE SEC sometime or another?
How can you be an investment fund, without there being some sort of PAPER TRAIL ON FILE WITH THE GOVERNMENT SHOWING WHAT YOU'RE DOING?
Am I not getting this?
Maybe some of you can break it down for me. Because FRAUD on this major a scale isn't done by one or two jokers. There's a whole parcel of THIEVES, in business AND IN THE GOVERNMENTAL AGENCIES THAT ARE SUPPOSED TO BE MONITORING THE INDUSTRY. Where were THE REGULATORS? Someone needs to be investigating the SEC and any other governmental agencies that have anything to do with this.
That this THIEF is out on bail is preposterous.
There are a whole lot of people who participated in this thievery and they need to be in jail too.