The trustee in charge of doling out “refunds” from Bernard Madoff’s fraudulent investment fund has come up against conflicting views on just how such returns should be administered, according to USA Today. Irving Picard, who has been charged with returning what remains of the assets formerly under control by Bernard L. Madoff Investment Securities, has determined that paying investors in proportion to their investments is the most fair means of returning investor funds. However, two lawsuits filed by Madoff investors say that the repayment should instead hinge on the account balances cited by Madoff prior to the revelation of his scheme. This second approach is based on the idea that investors managed their overall financial activity based on the falsely reported status of their investments with Madoff.
Questions Emerge Over Madoff Payments
Two theories have emerged in determining how best to return assets to former Madoff investors.
August 31, 2009