Lawfuel.net – Ponzi scheme operator and architect Bernie Madoff is expected to retain over $80 million in his “investor’s” money under a ruling from the bankruptcy trustee for the New York Mets.
Madoff’s firms were bankrupted in 2008 and his family took over $140 million in six years prior to the bankruptcy with almost $60 million taken in the two years prior to bankruptcy.
Other investors in the Madoff scheme are seeking to retain money that was effectively stolen from fictitious trading accounts and which were effectively removed from clients who suffered from the Madoff fraud.
The trustee’s argument “is good for two reasons,” said Nancy Rapoport, a bankruptcy-law professor at the University of Nevada, Las Vegas, in an e-mail. “It puts the amount of money at risk front-and-center, and it explains how easy it would be for people to hide behind fake securities transactions to circumvent bankruptcy law.”