Tuesday, December 16, 2008

Madoff Investors Facing Possible Lawsuits - Reuters

Reuters is reporting what we wrote about earlier - Madoff investors will soon become defendants.

"Disgraced money manager Bernard Madoff's suspected $50 billion fraud scheme looks set to burn even those who pulled their investments out long before the scandal rippled into the global financial system." http://www.reuters.com/article/ousiv/idUSTRE4BG0DT20081217

I wasn't clairvoyant. I have been down this road before. Back in the 80's we represented individuals who were accused of profiting from the demise of a brokerage firm, and we recently represented investors in the then-largest securities fraud in NJ. Similar facts, a well know money manager finds himself in a Ponzi scheme, and turns himself in, leaving his investors in the lurch, and those who got in early as well as those who got out early, as defendants in lawsuits by the money manager's receiver, to obtain repayment of their gains.

Our firm has already been contacted by investors who lost money through investments made indirectly with Madoff, and is investigating those claims. We expect that we will soon hear from investors who liquidated their accounts at a profit before the scandal broke.

Truly a massive and complicated fraud, with innocent investors, third party managers and others being drawn into the litigation.
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