Hunt Goes On for Missing Madoff Money

[Cees Binkhorst]

REPLY TO: D66 at nic.surfnet.nl

Openstaande vragen:
- Banco Santander SA. The Spanish bank, one of the largest conduits of
investor money to Mr. Madoff's firm, Bernard L. Madoff Investment
Securities LLC, paid up to settle potential legal claims by Mr. Picard:
$235million. De grootste bank van Spanje valt voor Madoff's verzinsels?
- Mrs. Madoff gave up tens of millions in cash and securities as well as
real estate & contents in exchange for $2.5million (subject to civil
claims): Haar zuster is één van de slachtoffers van Madoff.
- Mr. Picard already has sued to recover more than $10 billion from
investors who withdrew sums from their Madoff accounts in recent years.
Investors Jeffry Picower and Stanley Chais, who collectively withdrew $6.1
billion over and above their principal investment with the Madoff firm:
Dit is natuurlijk ook een aanwijzing voor medeplichtigheid.
- Some of Madoff's customers said their claims should be based on what was
shown on their November 2008 account statements, which reflected balances
of nearly $65 billion: Een juridisch vraagstuk, kun je iets baseren op een
gefingeerde administratie?
- Some people, such as those who invested with Mr. Madoff indirectly
through feeder funds, probably won't be eligible for SIPC payments: Een
vereiste voor beleggingen? Eisen dat niets indirect wordt belegd?
Gerelateerd: Kort geleden verloren Australische beleggers geld door een
faillissement van hun broker. In de voorwaarden was kennelijk opgenomen
dat de onderliggende waardepapieren deel uitmaakten van het vermogen van
de broker!

Groet / Cees

PS Gaat DNB nog optreden tegen 'de bemiddelaars zonder vergunning'?

http://online.wsj.com/article/SB124623268250766291.html
Hunt Goes On for Missing Madoff Money
By JANE J. KIM

Bernard Madoff ran his multibillion-dollar Ponzi scheme for at least 15
years. Some of his victims could be battling nearly that long to get their
money back.

The court-appointed trustee of the defunct Madoff firm, attorney Irving
Picard, has recovered just $1.2 billion of the $13.2 billion in estimated
net losses suffered by investors since December 1995.

While eligible victims may get payments of up to $500,000 from the
Securities Investor Protection Corp., set up to compensate investors for
theft or proven unauthorized trading in brokerage accounts, the rest of
their losses will be partially recouped from whatever assets Mr. Picard
manages to gather in the liquidation process.

On Friday, Mr. Madoff's wife, Ruth, agreed to a settlement with
prosecutors in which she relinquished all the assets she shared with her
husband. Mrs. Madoff will keep $2.5 million. Mr. Madoff will be sentenced
Monday.

Mrs. Madoff gave up tens of millions in cash and securities as well as her
$7.5 million interest in a New York City apartment and a $7 million
Montauk, N.Y., property, and jewelry insured at more than $2.6 million.
The agreement covers scores of items, including two fur coats valued at
$48,500, $18,000 in linens and bedding, and $8,500 in silverware.

Prosecutors, the Securities and Exchange Commission and Mr. Picard's
office are coordinating how to recover assets now considered tainted that
were received by other Madoff family members and close associates,
according to people familiar with the matter.

Much of Mr. Picard's take so far has come from liquidating Mr. Madoff's
business. He recently sold Mr. Madoff's market-making operation for $25.5
million.

The investor kitty also includes $235 million from Banco Santander SA. The
Spanish bank, one of the largest conduits of investor money to Mr.
Madoff's firm, Bernard L. Madoff Investment Securities LLC, paid up to
settle potential legal claims by Mr. Picard.

Most of what the trustee is expected to recover from now on will come from
potential "clawback" suits against investors who pulled out money from the
Madoff firm in recent years. Clawback suits in Ponzi schemes assert that
recent redemptions were fraudulently obtained from other investors.

Bankruptcy law allows Mr. Picard to go after entities that received
payments from the Madoff firm on or after Sept. 12, 2008, within 90 days
of the bankruptcy filing. However, federal and state statutes are broader
when it comes to recovering money that the courts deem to be fraudulently
conveyed as part of the Ponzi scheme. Under New York state law, Mr. Picard
could try to recover fictitious profits paid out within the last six
years.

Mr. Picard already has sued to recover more than $10 billion from
investors who withdrew sums from their Madoff accounts in recent years.
The biggest targets include trust funds and partnerships run by investors
Jeffry Picower and Stanley Chais, who collectively withdrew $6.1 billion
over and above their principal investment with the Madoff firm, Mr. Picard
has alleged. The men haven't formally responded to the suits. Their
lawyers have said they were victims of the fraud.

Last week, Mr. Picard filed a lawsuit against Cohmad Securities Corp., one
of the firms that helped feed investors to Mr. Madoff. The suit seeks more
than $100 million in commissions earned by Cohmad principals, who also
were sued for civil fraud by the SEC. He also is seeking more than $105
million in profits Cohmad employees and their families withdrew from the
investment accounts they had with Mr. Madoff. Lawyers for Cohmad's
principals deny any connection to the fraud.

Even as Mr. Picard gathers up assets, fights are brewing over how much
will be paid out. Mr. Picard has said he intends to pay claims on a "net
equity" basis, or the difference between what customers put in and what
they took out.

SIPC has mailed out about $142 million in checks to eligible claimants,
out of a total of $188.4 million that already has been approved. As the
July 2 deadline for filing SIPC claims approaches, more than 10,000 claims
have been filed. Many of those claims will likely be denied. Some people,
such as those who invested with Mr. Madoff indirectly through feeder
funds, probably won't be eligible for SIPC payments.

Many former Madoff customers want more. Some said their claims should be
based on what was shown on their November 2008 account statements, which
reflected balances of nearly $65 billion, before the fraud collapsed.
Several investors have sued Mr. Picard over the matter. The suits are
pending.

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