A group of investors who profited from Bernie Madoff’s Ponzi scheme lost their bid for U.S. Supreme Court review of lower court orders that they return their net winnings.
The justices May 3 declined to take up the case, which stems from a 13-year effort to clean up Madoff’s financial mess.
The investors—who were unaware that Bernard L. Madoff Investment Securities LLC was fraudulent—said they should keep what they made over and above their initial investments if they gave “value” in exchange for the money. Their satisfaction of Madoff’s “contractual obligations” provided that value, they argued.
But this “good ...