Thaindian News

Apr 05 (THAINDIAN NEWS) The Madoff investments, which quickly became known worldwide, is still managing to take money from it’s investors. Bernie Madoff’s famous Ponzi scheme consisted of paying investors out of money which he got from other investors. There were no actual profits from any of the investments. Madoff was at one time the chairman of the NASDAQ, and as such was trusted with billions of investor’s dollars. The majority of this money was lost in the scandal.

John Malkovish was among those investors. He paid in roughly 2.2 million dollars, and was reimbursed by the courts only 670,000 dollars. He has targeted Irving Picard, who was the trustee in charge of liquidating the assets of the Bernard L. Madoff Investment Securities LLC. His trust stated, “A customer generally expects to receive what he believes is in his account at the time the stockbroker ceases business.”

The judge who was presiding over the investment liquidation apparently felt otherwise, since he approves a net equity valuation of the investments. What this means is that is you invest 100,000 dollars, and then 10 years later, that investment has appreciated to 1 million dollars, that you will only get the original 100,000 dollars under the ruling. No adjustment for inflation, and no appreciation of value for the ten years of your investment. Since there is hardly any money left in the aftermath of the Ponzi scheme, and bankruptcy, there is no way to satisfy everyone. Among Madoff’s victims were Kevin Bacon and wife, Kyra Sedgwick, Steven Spielburg, Zsa Zsa Gabor, Larry King, and many many others.