Only Irving Picard wants to share things

Madoff victims recover than their last departure. It is the opinion just to judge Burton Lifland in a 53-page report. Thus, the magistrate in charge of bankruptcy in the southern district of New York approves the method of refund adopted by Irving Picard, the liquidator of the Bernard Madoff brokerage company. "The statements of account are entirely fictitious, do not reflect the actual positions of the titles that could be liquidated and therefore cannot be held to determine the net salvage value," said the magistrate. It is urgent to find a solution to a complicated folder where the amounts involved are huge, since the net losses of clients, victims of the pyramid fraud of former Chairman of Nasdaq, were estimated at $ 21 billion.

Only, Irving Picard wants to share things. Investors who have carried out withdrawals and who, in the end, earned money will not be refunded. Worse, they may need to put in the pot, under the procedure of the "claw-back", which, in this case, to claim capital improperly removed by feeder funds or investors to Madoff in the three months preceding the revelation of the scandal. They cannot complain in having made "false profits", said the judge, who wrote in his report that the most important is to pay the net losers more that unfairly reward the net winners.

A global quest

Bad news for those who thought that justice would have given them reason, with interest and compensation to the key. Some had planned before the judge's statements to appeal if this "money in, money out" method was accepted. It has somehow validate that the sums were placed without pay, while Bernard Madoff promised a safe investment with a reasonable and regular performance, between 6 and 15. Investors faced with Irving Picard plan argued that justice holds the amount of assets valued at November 30, 2008, or less than two weeks before the arrest of Madoff, on 11 December. On that date, the value reached $ 73.1 billion.

They take to the ISDR (Securities Investor Protection Corp.), the guarantee fund created by Congress in 1970 and who oversees the work of the liquidator. The complainants believe that victims will not normally qualify for the $ 500,000 maximum pays the ISDR to an individual victim of a bank failure, due to the unique nature of this case. Or the site of the liquidator said organization covers nearly $ 650 million. An amount accordingly but not good enough compared to the overall damage, but the $ 5.2 billion claimed in some 2,000 complaints validated by the liquidator, who has all same denied more than 10,000 also. "claw-back" is therefore required to satisfy the greatest number. The quest of Irving Picard is global. The foster Fund strafed wide. Few have responded to his expectations, most are pushing assaults. Irving Picard for example request $ 535 million to the liquidators of the Luxembourg Luxalpha sicav, which has targeted French investors.

Need constantly to fight to get a hundred, there are sometimes surprises. Thus, the Levy family, the head of charitable works, came, end of January, negotiate an arrangement of 220 million with the liquidator, who said in a statement: "The Levy acted honourably and must be welcomed." We hope that others will follow their example. "Despite this tidy sum and product of the sale of the property of Madoff, Irving Picard has only $ 1.5 billion. The anger of the cheated clients is therefore not near falling.