Trustee: Bernie Didn't Buy Stocks

Submitted by Colleen Lutolf on Fri, 02/20/2009 - 15:15

What was Bernie Madoff's investment firm Bernard L. Madoff Investment Securities LLC buying with investor cash for the past 13 years? Not securities!

Irving Picard, the court-appointed trustee charged with overseeing the liquidation of Madoff's assets, told investors at a meeting held in the auditorium of the U.S. Bankruptcy Court that there is "no evidence to indicate securities were purchased for customer accounts," according to a CNBC report. 

Picard said he has recovered $650 million so far and that victims could qualify for up to $500,000 in funds from the Securities Investor Protection Corp. (SIPC).

The last day to file a claim with the SPIC is July 2. Although the SEC said if those claims aren't filed by March 4, they will be "subject to delayed processing and less favorable terms." 

"There wasn't any stock bought or sold," said David Sheehan, an attorney working for Picard, according to CNBC. "It was all just made up. ... You got somebody else's money."

Unfortunately, that's usually how Ponzi schemes work.

A video of the meeting will be posted here as soon as possible, according to the SIPC.

 

 

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