Madoff Fraud Victims in MN Face Clawbacks
Minnesotans who fell victim to Bernard Madoff's Ponzi scheme received more bad news recently when some were hit with clawback suits, according to the Star Tribune.
Star Tribune columnist Eric Wieffering recently reported that Irving Picard, the trustee handling the liquidation of Madoff's firm, has filed hundreds of lawsuits-some against Minnesotans and Minnesota-based institutions-seeking to recover fictitious investment profits paid to Madoff investors.
The idea behind the clawback suits is simple, according to the Star Tribune: “If withdrawals from your Madoff account exceeded deposits, you were paid with other people's money. So, give it back.”
The Star Tribune reports that the number of Minnesotans affected by the clawback suits is unknown, but “a random sampling suggests Picard is seeking” more than $100 million from “individuals, investment partnerships, and charitable foundations with direct or indirect ties to the state.”
To read more in the Star Tribune about Madoff's Minnesota victims facing clawbacks, click here.