There is an effort to fund recovery from the Madoff investment scandal . The Madoff Trustee, Irving Picard, reported a recovery and settlement agreement of $ 11.079 billion, of which $ 9,241 billion had been distributed or committed to the victims of Bernard Madoff.
Since it has been concluded that no legitimate investments have been made on behalf of investors for at least the last 12 years, the recovery has proceeded on a "money-in/out" basis, regardless of the false investment statements given to investors. These false statements, representing what investors believe are theirs, combined with a total balance of about $ 64 billion. In a series of payments now until the sixth round, the victims have recovered $ 9.16 billion, more than half of the reported $ 17.5 billion invested. An additional $ 320 million is expected to come after further litigation resolution is pending, and an additional $ 4 billion recovered from foreclosure actions has not yet been distributed. Of the tens of thousands of plaintiffs, about 1,300 have been made intact: restored as far as their initial investment. Accounting for "stolen funds" in this case does not include inflation, interest, invested time, opportunity cost, and reported wrong balance. The interpretation of the law does not consider the time value of money when replacing the lost funds.
Madoff's combined asset is approximately $ 826 million and has been frozen. Madoff listed his secrets, and his company's assets to the SEC on December 31, 2008, which was disclosed on March 13, 2009, in court filings. Madoff has no Individual Retirement Account, no 401 (k), no Keogh Packages, no other pension plans and no life allowances. He has less than a combined $ 200,000 in securities in Lehman Brothers, Morgan Stanley, Fidelity Investments, Bear Stearns, and M & T Bank. No registered foreign or Swiss bank account.
Professor John C. Coffee of Columbia University Law School said that most of Madoff's money may be abroad. The SEC believes that keeping secrets of assets will prevent them confiscated by foreign regulators and foreign creditors.
Video Recovery of funds from the Madoff investment scandal
Aset gabungan
Ruth Madoff's combined assets with her husband have a net worth of between $ 823 million and $ 826 million. He has $ 92.6 million in assets registered under his own name: a $ 7 million penthouse on Manhattan's Upper East Side; a $ 11 million home in Palm Beach, Florida; a three-room apartment on Cap d'Antibes in French Riviera worth $ 1.5 million; $ 45 million in municipal bonds and $ 17 million in cash; Cruises worth $ 8.8 million; and jewelry worth $ 2.6 million. The SEC is working with federal prosecutors, who have filed notice with the Federal Court to seek confiscation of all registered illicit assets.
On March 17, 2009, prosecutors filed documents listing more assets including $ 2.6 million in jewelry and about 35 sets of watches and cufflinks, over $ 30 million in loans to spouses by their son, and Ruth Madoff's interest in real estate funds sponsored. by Sterling Equities, whose partners include Fred Wilpon. Ruth Madoff, and Peter Madoff, invest as "passive limited partners" in real estate funds sponsored by companies, as well as other venture investments. Assets also include Madoffs interest in Hoboken Radiology LLC in Hoboken, New Jersey; Delivery Concepts LLC, an online food ordering service in midtown Manhattan that operates as "delivery.com"; interest in Madoff La Brea LLC; interest in the restaurant, P.J. Clarke at Hudson LLC; and Boca Raton, Viager II LLC based in Florida.
On March 2, 2009, Judge Louis L. Stanton modified the existing freeze order to hand over Madoff's assets: his securities company, real estate, artwork, and entertainment tickets, and grant the prosecutor's request that the existing freeze remain valid for Manhattan Apartments, and holiday homes in Montauk, New York, and Palm Beach, Florida. He also agreed to give up his interest in Primex Holdings LLC, a joint venture between Madoff Securities and several large brokers, designed to mimic the auction process on the New York Stock Exchange. Madoff April 14, 2009, the opening day of New York Mets tickets sold for $ 7,500 on ebay.
On March 31, 2009, the town of Fairfield, Connecticut, which lost $ 42 million, was granted a temporary restraining order to freeze and secure all real estate properties owned by Madoffs and his inner-circle houses in Greenwich, including private property and Madoff's financial statements, relatives and executives with Fairfield Greenwich Group, Maxam Capital, and other companies suspected of feeding Madoff funds, allowing Fairfield to recover up to $ 75 million.
On June 25, Madoff agreed to lose his share of $ 170 million in real estate, investment and other assets, with his wife losing $ 80 million. Ruth Madoff maintains $ 2.5 million as part of the agreement. Assets will be sold by federal marshals.
In January 2010, the Manhattan Madoff Penthouse at 133 East 64th Street was sold to Alfred R. Kahn, the main marketer of the stuffed Cabbage Patch Kids, for approximately. $ 8.9 million, one million less than the original demand price.
Maps Recovery of funds from the Madoff investment scandal
Irving Picard, Trustee
The court-appointed attorney for Madoff Case, Irving Picard, and his company's lawyer Baker Hostetler LLP (a Cleveland-based company that joined Picard the week before he was appointed), is looking for assets for distribution to investors. US District Judge Lawrence McKenna gave Picard the power to confiscate assets and records, request documents, summon witnesses, and enter Madoff's residence around the world, including his Manhattan penthouse.
Claim procedure
On January 2, 2009, Picard sent a letter to 8,000 potential complainants - advising customers they had until March 2, 2009, and creditors, until July 2, 2009, to file a claim.
On February 20, 2009, Picard, at a meeting with Madoff creditors covering individual investors, banks, charities and others, pointed out that his investigations to date have found no evidence that any securities are bought on behalf of customers in at least 13 years. It's "cash and cash." He identifies more than $ 830 million in liquid assets that may be recovering. David Sheehan, a lawyer who works for Picard, points out: "We saw every member of the Madoff family."
On April 23, 2009, Picard said he would not seek funding from "net losers" in fraud, referring to those who lost more than they withdrew from time to time, but the investors had to prove it. 223 investors who have a direct personal relationship with the Madoff clan have received a letter requesting a $ 735 million refund that was exchanged from Madoff's company six years before the company collapsed - a deadline permitted under New York law. Known as the legal doctrine of fraudulent diversion in bankruptcy proceedings means that investors who withdraw their money before fraud is lowered may be forced to recover their profits or even a portion of their initial investment. Many of these 223 investors - relatives of Madoff, their employees, and their families, and managers who gave billions of dollars of investor money to him, withdrew funds in the preceding 90 days of the December 10, 2008 capture by Madoff.
Seizures and clawbacks
On March 16, 2009, a filing for bankruptcy court showed British enclave Gibraltar had found $ 75 million in Madoff assets.
On April 9, 2009, Irving Picard sued Banque Jacob Safra, headquartered in Gibraltar at the Federal Manhattan Bankruptcy Court, seeking $ 150 million sent through Madoff cable as a "special payment" to the bank, which was invested on behalf of Vizcaya Partners, a British Virgin company Islands. Starting in 2002, Vizcaya has channeled a total of $ 327 million to Madoff's investment company through 26 different wire transfers, at the end of October 2008. Incidentally, Madoff's parents have an investment business called Gibraltar Securities, registered on behalf of his mother, using their home as a business address. In January 1964, the SEC suspended their investigation when Sylvia agreed to close down "her" business.
On March 23, 2009, a bankruptcy trustee revealed that the French authorities would seize the French Riviera apartment on behalf of a customer allegedly deceived in France. The property, listed in the name Ruth Madoff located in Cap d'Antibes, is worth about $ 1 million, and contains about $ 900,000 in furnishings.
On April 17, 2009, Picard sued Kingate Management Ltd. for a return of $ 255 million transferred into it shortly before the collapse of Madoff Investment. Beginning in the mid-1990s, Kingate Global and Kingate Euro feeders, made by Carlo Grosso, channeled $ 1.7 billion of his clients' money to Madoff. The fund is registered in the British Virgin Islands. The complaint also mentioned Bank of Bermuda Ltd., a unit of HSBC Holdings Plc, as the defendant. The bank transferred the money.
On May 1, 2009, Picard filed suit against Stanley Chais, 82. The complaint accused him of "knowing or should know" him in the Ponzi scheme when his family's investment with Madoff averaged 40% and sometimes jumped as high as 300%. He also claimed that Chais was a major beneficiary of the scheme for at least 30 years, allowing his family to withdraw more than $ 1 billion from their accounts since 1995 - the money belonging to Madoff's victim. The case number is Picard v. Chais, 09-01172.
Stanley Chais is a wealthy investment adviser from Beverly Hills, California, who is accused of mobilizing money for personal gain, including Madoff, through Chais's Brighton Co, a limited partnership set up to manage money. He takes around 3.8% of the profits as a management fee. The Chais Family Foundation, which in 2007 reported assets of $ 178 million and a charity donation of nearly $ 8.2 million, was removed and closed. He owns a house in Beverly Hills, and an apartment in New York. (See Participant in Madoff investment scandal.)
On May 7, 2009, Madoff Bankruptcy Trustee, Irving Picard filed a lawsuit against J. Ezra Merkin, seeking to recover nearly $ 500 million withdrawn from Madoff's account in the past six years. The complaint states that since 1995 Merkin has directed more than $ 1 billion to Madoff through three private hedge funds, Ascot Partners, Ariel Fund and Gabriel Capital. Since 2002, the fund attracted at least $ 494 million from Madoff - a return known to Merkin as "should have known" is a fraud.At least 500 examples in the last ten years when Madoff's accounts report shows a large block of shares purchased or sold for a price that is not in accordance with the stock trading range for the day when the transaction should have occurred The case number is 08-01789 (BRL): IRVING H. PICARD, Trustee for Liquidation Bernard L. Madoff Investment Securities LLC, v. J. EZRA MERKIN, GABRIEL CAPITAL, LP , ARIEL FUND LTD., ASCOT PARTNERS, LP, GABRIEL CAPITAL CORPORATION On May 18, 2009, Merkin approved New York Attorney General Andrew Cuomo's demands to step down as a hedge fund manager and place it in a curator.
On May 12, 2009, Picard sued Harley International (Cayman) Ltd., which invested more than $ 2 billion with Madoff, receiving an average annual return of 13.5%. The lawsuit accuses Cayman Islands-based funds of ignoring warning signs that should remind him of fraud. Harley attracted more than $ 1 billion from the company in two years before its collapse on December 11, 2008, including $ 425 million in the last three months.
On May 12, 2009, Picard filed a $ 5 billion lawsuit against Jeffry Picower, his wife, Barbara, and the Picower Foundation. The complaint accuses Picowers, a friend of Madoff for decades, "knowing or should know that they are benefitting from fraudulent activity or, at least, failing to do a reasonable due diligence." The Palm Beach, Florida Foundation has given millions to the Massachusetts Institute of Technology, First Human Rights, and the New York Public Library. It also funded diabetes research at Harvard Medical School and Parkinson's research at Columbia Medical School. On July 31, 2009, Picower filed a motion to deny the claim, saying that he "truly believed in the personal and professional integrity of Bernie Madoff." He urged the Court that the lawsuit was an "exaggerated paradigm" that reflected "a frenzied effort" to recover a large sum from one of Madoff's richest investors. On October 25, 2009, the 67-year-old Picower was found dead at the bottom of the Palm Beach pool in Florida.
On May 14, 2009, a lawsuit to raise $ 10.1 billion in fictitious profits has been filed.
On May 18, 2009, Picard sued Fairfield Greenwich Group, seeking a $ 3.2 billion return during the period from 2002 until Madoff's capture in December 2008. $ 1.2 billion was withdrawn in the last three months of fraud. Since 1995, Fairfield funds invested about $ 4.5 billion with Bernard L. Madoff Investment Securities LLC, or BLMIS, through 242 wire transfers. The funds are Fairfield Sentry Ltd., Greenwich Sentry LP, and Greenwich Sentry Partners LP. However, the money might already be in the hands of Fairfield's own clients, who might cross the line into Picard, since they are not direct investors with Madoff.
On June 22, 2009, Picard filed a claim against Cohmad Securities founder Maurice "Sonny" Cohn, daughter of Marcia Cohn, and Robert Jaffe, among more than two dozen individuals and a trust in the US Bankruptcy Court in New York. The lawsuit claims that up to 90 percent of Cohmad's revenue comes from referring clients and that the company has a "symbiotic" relationship with Madoff, having received hundreds of millions of dollars of fraud. The lawsuit sought more than $ 100 million paid to Cohmad six years before the Madoff company declared bankruptcy, and more than $ 105 million in Cohmad's employee income and their family withdrew from their investment account with Madoff. The case is Picard v. Cohmad Securities Corp., 09-AP-1305, US Bankruptcy Court, Southern District of New York (Manhattan).
On June 26, 2009, Judge Chin ordered Madoff to personally sacrifice $ 170 million in assets, and his wife, Ruth agreed to release his claim over $ 80 million and keep only $ 2.5 million. The order allows the US Securities and Exchange Commission (SEC) and Picard to continue to pursue Mrs. Madoff, and on July 29, 2009, Irving Picard sued him for $ 45 million.
Madoff owned property owned by the United States auctioned without furniture after Labor Day 2009; works of art and property, including boats, will be auctioned off later.
Madoff House on 216 Old Montauk Highway, Montauk, New York, is sold through Corcoran Group for $ 9.4 million to real estate investor Steven Roth from Vornado Realty Trust. Madoff House at 410 North Lake Way, Palm Beach, still on the market as of August 2010; in February 2010 the asking price for the property, which was also offered by Corcoran Group was lowered to $ 7.25 million, below the initial asking price of $ 8.49 million and the price of previous demand which decreased by $ 7.9 million. In May 2010, Madoff's penthouse on 133 East 64th Street in Manhattan was sold to Al and Patsy Kahn for $ 8 million, a fall in the price of the original asking price of $ 9.9 million and a reduced listing price of $ 8.9 million.
On April 1, 2009, the Marshall Service of the United States confiscated several ships from the marina on the east coast of Florida; this includes a specially restored, specially-made, $ 192 Rybovich-made antique cruise ship, $ 2.2 million, featuring hydraulic and teak lifts, as well as several other boats and private property within the family home in Palm Beach, Florida.
On November 19th, 2009, many items previously owned by Madoff were auctioned off at a private auction by the USUS Marshals Service. Bull is sold at auction for $ 700,000 to an unknown buyer. At the same auction, other items previously belonging to Madoff were sold, including the 38-foot 2003 Shelter Island Runabout Sport, Sitting Bull, which sold for $ 320,000 and a 2,000-foot 24-foot center console from the Company The Maverick Boat, Little Bull , which sells for $ 21,000. The 61-foot Viking sports cruise ship of 2003 once owned by Frank DiPascali sold for $ 950,000. A Mercedes-Benz CLK 320 1999 convertible with 12,827 miles on it, owned by Ruth Madoff, sells for $ 30,000.
Manhattan's Penthouse and Montauk Long Island summer homes were confiscated in July 2009.
Picard plans to sell Madoff aircraft and interest in NetJets.
In an interview in July 2010, Picard said that it could potentially end up about half of the approximately 2,000 individual investors who attract more of Madoff's funds than they invested. These investors claim such a recovery would cause personal difficulties. For example, an 87-year-old former school secretary has made a mandatory withdrawal from his retirement account and has paid tax on the withdrawal, but Picard has sent two letters to demand a repayment of $ 691.372. On November 12, 2010, Picard sued five former Madoff employees: former head of operations Daniel Bonventre, former Enrica Cotellessa-Pitz controller, merchant David Kugel, and employees Annette Bongiorno and Jo Ann Crupi. The lawsuit sought a $ 70 million recovery in allegedly fake transfers. On November 17, 2010, Picard filed a clawback lawsuit seeking a $ 20.4 million recovery in fake profits from Melvyn I. Weiss and David J. Bershad, who had previously pleaded guilty to extortion charges in previous securities fraud cases involving bribes to clients.
Banco Santander SA
Geneva prosecutor Dario Zanni confirmed on June 20, 2009 that he had opened a criminal investigation into allegations that the Geneva-based Banco Santander SA Optimal Investment Services SA deceived the client by misinterpreting his relationship with Madoff and the due diligence he carried. out on Madoff activities. A criminal complaint was filed by an independent asset manager.
On June 16, 2009, Judge Burton Lifland approved the settlement between Picard and Banco Santander SA's Optimal Investment Services. The SUS Optimal Fund, one of Madoff's largest feeder funds, agreed to pay $ 235 million, about 85% of the $ 285 million that Geneva-based hedge fund group was redeemed within 90 days before Madoff was arrested. In December 2008, Santander had $ 3.2 billion in client money invested with Madoff, a relationship that began in 1996. The fund continues to have claims against Madoff real. Spain's largest bank earned nearly $ 100 million in management fees in 2006 and 2007 combined from the sale of feeder funds. Santander lost EUR17 million ($ 23.8 million) from his own money. 70% of affected clients are in Latin America. In April, Santander offered compensation to his clients for losses from fraud, and 93% of clients affected by fraud Madoff had received, originally worth EUR1.38 billion. The offer has been heavily criticized.
Fairfield's Green Green Group
On July 20, 2010, Picard amended its lawsuit against Fairfield Greenwich Group claiming they had "actual and constructive knowledge" about Madoff's fraud. Picard is looking to recover nearly $ 7 billion from Fairfield, claiming that it has facilitated fraud by operating a feeder fund. Fairfield had previously filed a lawsuit filed by the Massachusetts Secretary of the Commonwealth for $ 8 million to cover the losses of 15 investors from the country.
Value of recovered assets
On February 26, 2018, Picard announced the release of a new recovery of $ 621 million, bringing a net recovery of up to $ 11.4 billion. Picard holds another $ 1.8 billion saved as reserves for the contested claim. Separate funds administered by the Department of Justice are distributed $ 723 million in November 2017, with another $ 3 billion in the funds remaining to be distributed.
On September 1, 2010, Picard reported about $ 1.5 billion found. Eight lawsuits against Madoff's largest "feeder fund" and other investors sought a total loss of $ 13.7 billion. $ 301,407.190 from the Bank of New York Mellon fund is on a Madoff corporate account, and $ 233,500,000 of JP Morgan Chase funds in three other accounts.
On October 31, 2008, Craig Kugel, a human resources employee, was "appointed" a guardian by Peter Madoff, who told him to sign a lease for his brother, as a guarantor for the Mercedes S-550, as Madoff refused to provide the company's credit information requirements. A Bankruptcy Court Judge, Burton Lifland, denied that Kugel is estimated to still have $ 58,212 in lease obligations.
Picard suspended Madoff's $ 117,359 rental from Land Rover 2007, 2008 Cadillac, 2007, 2008 and 2009 Mercedes-Benzes, and a Lexus 2006.
On April 28, 2009, it was disclosed that the Bank of New York holds $ 7 million in Madoff's six accounts.
BLMIS
Business expenses
A May 5, 2009, court action to consolidate business and personal assets, reveals that Madoff used $ 2.7 million of his company's cash to pay homes in New Jersey to old employee JoAnn Crupi. The company lends nearly $ 11 million to Madoff's sons, Andrew and Mark for real estate purchases. He also gave a $ 9 million loan to his brother Peter in 2007, nothing ever paid off. The company also gave money to two entities owned by members of the Madoff family, including $ 1.7 million in capital contributions to Madoff Energy Holdings LLC, owned by Andrew, Mark and Shana Madoff, who also worked for the company. The Madoff company also paid $ 4.5 million to support Ruth Madoff's real-estate investment. More than $ 11.5 million was used to buy two yachts for the Madoff family. The company provides company cards to his wife, Ruth, the wife of his son and his brother's wife, even though they do not work at the firm. In January 2009, Madoff and his wife, Ruth, spent over $ 100,000 on American Express Corporate Company cards: $ 1,564 at Bistro Chez Jean-Pierre in Palm Beach, Fla.; $ 2,000 at Georgio Armani in Paris; and $ 2,813 at an Apple computer store in New York. Peter Madoff's wife, Marion, was not hired, but paid $ 163,500 in salary by Madoff's company last year. Madoff also paid $ 471,000 to the marina on Long Island and nearly $ 1 million for exclusive country clubs including Breakers, Atlantic Country Club on Long Island, Palm Beach Country Club, and Trump International Golf Club. Madoff paid the salary of Frank DiPascali's captain. as well as the captain of his private ship, his housekeeper and his home nanny in Florida.
Sales to Castor Pollux
Madoff estimates the value of his business in Manhattan for $ 700 million which includes investment management units and market-making operations. On April 27, 2009, Castor Pollux Securities LLC ("Castor Pollux") won an offer for acquisition of assets related to the BLMIS market-making business. Castor Pollux will pay $ 1,000,000 at closing and up to $ 24.5 million in deferred compensation through December 2013. Three bidders compete in the auction. One entity submitting an offer on April 22, 2009, withdrew its offer before the auction. On April 30, 2009, the sale was approved by the Bankruptcy Court.
Rental termination
On July 1, 2009, the Picard Trustee agreed to take over the 1986 lease on behalf of the FBI for at least a year of inquiry.
Chapter 7, Personal Bankruptcy Consolidation Forced by SIPA liquidation from BLMIS
On April 10, 2009 US District Judge Louis Stanton reversed his decision on December 18, 2008 and ordered investors to force Madoff into a private bankruptcy proceeding against the wishes of federal prosecutors and the Securities and Exchange Commission who claimed it was unnecessary and expensive.
On April 13, 2009, a petition by lender Blumenthal & amp; Associates of Florida General Partnership, Martin Rappaport, Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno and Steven Morganstern submitted. The filing said their claim of $ 64 million against Mr. Madoff was based on the balance contained in the last statement they received from his company. Claims are based on breach of contract, conversion, and fraud.
On April 17, 2009, Denny Chin, the US District Judge presiding over the Madoff criminal case, was separately granted a motion by the prosecutor to withhold the transfer of assets held by Madoff or his wife, Ruth, and must undergo criminal confiscation proceedings rather than bankruptcy proceedings.
SIPC
On June 10, 2009, Judge Burton Lifland allowed Picard's request to merge two litigation proceedings - involving the liquidation of Bernard L. Madoff Investment Securities LLC, carried by the Securities Investors Protection Company (SIPC) and the intentional Madoff personal bankruptcy case, claiming " it is not possible to separate Madoff's affairs from the people of his company.The Case of SIPC is Protection of Securities Investors Corp. v. Bernard L. Madoff Investment Securities LLC , 08-01789, US Bankruptcy Court, Southern District of New York (Manhattan).
On January 6, 2009, Picard and his company's lawyers said some investors may get cash advance from SIPC long before March 4, 2009.
SIPC is a securities industry fund set up by the United States Congress to help customers of failed brokerage firms. SIPC has $ 1.7 billion in assets, $ 1 billion in available credit from the US Treasury, and other credit lines from several international banks. Each investor can receive a maximum of $ 500,000 from SIPC, but only for cash or securities lost from their account. It will take several years before any investigation of the scandal is concluded and some investors may file a claim.
On February 20, 2009, Picard, at a meeting with Madoff's creditors that included individual investors, banks, charities. and others, affirming that each customer can recover up to $ 500,000 under the Securities Investor Protection Act. David Sheehan, a lawyer working for Picard, indicated that SIPC would try to recover the "false profits" some investors had. "It's all just a fake... you have someone else's money."
On September 3, 2010, a total of $ 722,970,275.94 of Securities Investor Protection Corporation (SIPC) funds was made in a decree sent to 2212 prosecutors in the liquidation action of the Securities Insurance Protection Act (SIPA). As of September 3, 2010, a total of 13,331 customer claims have been filed with respect to 3,565 customer accounts at BLMIS. Many rejected claims are due to the fact that they are from feeder subscribers and not direct BLMIS customers, as well as many duplicate claims that were rejected.
On June 12, 2009, a lawsuit was filed against SIPC Bankruptcy Lawyer Irving Picard by Maureen Ebel, Roger and Diane Peskin who claimed a fiduciary duty violation for failing to follow the rules to make payments to Madoff's victims. Picard demanded that Peskins pay back $ 113,000 withdrawn from Madoff within 90 days before the company closed. They also invested more than $ 470,000 in the same period, a net loss of $ 357,000. Ebel claimed he owed for two accounts that kept his life savings.
Program difficulty
The Difficulties program is designed to provide qualified persons up to $ 500,000, insurance limits from Securities Investors Corp. that can not afford medical and life costs, file for personal bankruptcy, and age 65 who have been forced to leave retirement and return to work. Claims will be decided within 20 days after qualification is determined. The filing deadline is 2 July 2009.
Tax
On March 17, 2009, the IRS issued a new rule for Madoff investors who claimed the loss of theft. Revenue 2009-9, sets out general rules for claiming theft loss from the Ponzi scheme, and the 2009-20 Procedure Procedure, including secure harbor selection for investors in the scheme.
Under the rule, investors who do not sue Madoff or others will be allowed to deduct theft loss for fiscal year 2008, equal to 95 percent of their total investment, including all fictitious income credited to their account in which they are taxed, but none withdrawal, or actual or potential recovery from SIPC or their own insurance. Victims who decide to sue Madoff or a third party, believing that they may have some possibility of recovery, can still reduce 75 percent of their investment. This reduction will not be limited by the reduction in the detailed deductions. Any loss exceeding current income may result in a net operating loss, which can be re-done, on taxpayer election, 3, 4, or 5 years, with the remaining loss bringing forward 20 years. These rules apply to all Ponzi schemes where there have been federal or state indictments of the main promoter.
Alternatively, victims may choose to file a refund claim for the full amount of their investment, including fictitious income previously taxed, but the claim will be subject to the standard rules for theft loss. The victim may also file a refund claim based on not including the fictitious earnings reported beforehand, but such claim must be filed when the previous return is still open for refunds, generally three years after filing.
Civil process
On February 9, 2009, a partial verdict on December 11, 2008, a civil lawsuit by the Securities and Exchange Commission of the United States, the case of SEC v. Madoff, 08-10791 in US District Court, Southern District of New York (Manhattan) is made permanent. As part of the assessment, Madoff is banned from the securities industry. He also agrees that his assets will remain frozen and do not violate securities laws. The agreement does not require Madoff to recognize or deny any allegations against him. It also leaves the issue of civil penalties and payments to be paid against Madoff for another time. The Agreement is not related to an application or indictment in a criminal matter.
Approximately 120 related Madoff class actions have been filed - particularly suited on behalf of investors who were indirectly invested when they entrusted their money to funds such as Fairfield Greenwich Group, (Case No: 09-118) in the US District Court for the Southern District of New York (Manhattan) Kingate Management, Tremont Group, and J. Ezra Merkin Ascot, Gabriel and Ariel Partners. Contingency fees to lawyers are usually 25% or more of the recovery.
JP Morgan Chase Bank
Madoff opened a business account in what was then Chemical Bank in 1986. Chemistry purchased Chase Manhattan in 1996, and the merged bank took on the name of the more famous Chase. Chase joined JPMorgan to form JPMorgan Chase in 2000, and Madoff maintained his account there until his capture in 2008.
On April 23, 2009, JP Morgan Chase and the Company were served with complaints from MLSMK Investment Company, a Palm Beach, Florida partnership that directly deposited $ 12.8 million into Madoff accounts between October and early December 2008. The lawsuit accused banks of assisting Madoff crime by maintaining his giro account and trading with his brokerage firm shortly after the bank realizes that he committed a big fraud. In September 2008, Morgan Chase began withdrawing $ 250 million from its own money from the Sentry fund operated by Fairfield Greenwich Group, Madoff's supplier fund. If the bank has terminated Madoff's account, then the plaintiff will not lose their money.
On October 20, 2009, a complaint changed for an investor lawsuit in the Supreme Court of New York added the accounting firm of KPMG, JPMorgan Chase and Bank of New York Mellon. Also named Oppenheimer Acquisition Corp., Massachusetts Mutual Life Insurance (MMLIC.UL), Tremont Founder Group Fund Sandra Manzke and former Chief Executive of Tremont, Robert Schulman. The amendment was based on a plaintiff's jail trial interview with Madoff in July 2009 and an investigation. "The complaint alleges that Bernard Madoff's fraud was not settled separately," the law firm statement said. "The size and scope of such a fraud makes it impossible for Madoff to act alone, accusing JP Morgan and the New York Bank and the KPMG LLP power generation accounting firms and their international counterparts KPMG UK and KPMG International are the main players. needed to complete the fraud. "
On December 2, 2010, Picard sued JPMorgan Chase, seeking redress and restitution of at least $ 6.4 billion. The suit was initially sealed due to concerns of secrecy on Chase's part, but both sides agreed to disclose it on February 3, 2011. The lawsuit alleges that Chase knew or should have known that Madoff's wealth management business was a fraud. However, Chase did not report his concerns to regulators or law enforcement until October 2008, when told the British Serious Organized Crime Agency that Madoff's investment performance "is too good to be true." The lawsuit also claims that Chase bankers made a lucrative offer with Madoff even when the risk management executive expressed concern about the nature of Madoff's business. He also claimed that Chase officials knew that Friehling & amp; Horowitz was not reviewed by colleagues or registered with the Public Accounting Firm Board (later known that Friehling's company had declared in writing for more than a decade that the company did not audit). Almost as seriously, Picard alleges that Chemical/Chase retail bankers failed to perform even basic oversight of Madoff's banking activities, despite several transactions that have occurred since the 1990s that increased the emergence of money laundering or checking habits. Picard argues that at first glance Madoff's account activity at Chase will reveal that his business may not be legitimate. He also argues that even after Chase reported his worries about Madoff's performance to British officials, it did not restrict Madoff's banking activities until his arrest two months later.
Luxembourg residence with UBS
Luxembourg's Finance Minister Luc Frieden is negotiating a settlement with Swiss bank custodian, UBS. Luxalpha, a Luxembourg-based fund made at their request by the bank holding about $ 1.4 billion in assets. UBS refutes recommending to any Madoff product client, stating that clients know what they are investing. The CSSF financial regulator has given the bank three months to reform its practice.
About 70 investors whose money was put into Access International Advisors LLC LuxAlpha Sicav-American Selection sued UBS, custodian bank, Ernst & amp; Young, the auditor, and the fund director. Renà ©  © -Thierry Magon de la Villehuchet, the chief executive officer of Access International, who runs LuxAlpha, was found dead in his office in New York after losing all the money he invested in Madoff. ( See: Madoff Investment Scandal # Impact and Impact )
pending JPMorgan Chase pending approval
In the fall of 2013, JPMorgan started talks with prosecutors and regulators to resolve the charges that turned a blind eye to Madoff's actions. On January 7, 2014, JPMorgan agreed to pay a fine of $ 2.05 billion in fines and to settle civil and criminal charges related to his role in the Madoff scandal. The bank signed a suspended prosecution agreement - first imposed on the main bank of New York City - with US Attorney for the Southern District of New York Preet Bharara. Under the agreement, JPMorgan acknowledged that it and its predecessor failed to report illegal activity in Madoff's section as required by the Bank Secrecy Act since 1994. Bharara filed a two-count criminal information that burdened JPMorgan with a breach of the Privacy Act, but the allegations would be dismissed within time of two years provided that JPMorgan reforms its anti money laundering procedures and cooperates with the government in its investigation. The bank agreed to lose $ 1.7 billion - the largest foreclosure ever imposed in US financial history. The government will use this money to help all Madoff victims. JPMorgan also agreed to pay a $ 350 million fine to the Office of Currency Financial Supervisory.
See also
- List of investors at Bernard L. Madoff Securities
- Anthony Inder-Rieden
References
External links
- Madoff Coalition for Investor Protection
- AMEX Billing Company, January 2009
- Complaints against JP Morgan Chase (April 23, 2009)
- Complaints against Stanley Chais (May 1, 2009)
- Complaints against J. Ezra Merkin (May 7, 2009)
- Complaints against Harley International (Cayman) Limited (May 12, 2009)
- Picard v. Fairfield Greenwich Group 08-01789 (May 18, 2009)
- Picard v. Cohmad Securities Corp 09-AP-1305 (June 22, 2009)
Source of the article : Wikipedia
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