Madoff Victims Can Get $3 Million From Other Ex-Customers (1)

The trustee overseeing the recovery of money for victims of Bernard L. Madoff’s Ponzi scheme is entitled to collect $2,925,000 plus interest from good-faith investors who successfully withdrew funds from Madoff’s brokerage business in the two years before its bankruptcy filing, the Second Circuit affirmed Tuesday.

Documents presented by Irving H. Picard, the trustee, adequately showed funds received by JABA Associates LP and its partners came from Bernard L. Madoff Investment Securities LLC rather than Madoff’s sole proprietorship, Judge Rosemary S. Pooler said. Therefore, the fictitious profits are recoverable under the Securities Investor Protection Act, she said.

Other Madoff cases ...