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Madoff Ponzi Scheme Victims Lose Bid to Recover Tax Overpayments

April 30, 2021, 3:40 PM

The dismissal of an attempt by alleged Ponzi scheme victims to recover more than $535,000 in interest on tax overpayments was upheld by an appeals court because the lower court lacked jurisdiction in the case.

David Paresky and Linda Paresky were allegedly victims of Bernie Madoff’s Ponzi scheme, which defrauded thousands of investors. The Pareskys alleged that they “paid millions of dollars in taxes on income that they later learned was fictitious,” according to an amended complaint, and sought to recoup their losses.

They received about $10 million in refunds from the agency, but also ...