No Ruling on Mets, Other Madoff Clients in Appeal for Victims
Thursday, March 03, 2011
A federal appeals court in Manhattan held off on a decision on a challenge by former clients of disgraced financier Bernie Madoff about how a trustee is calculating gains and losses.
The owners of the New York Mets are among the former clients of Madoff, who is serving 150 years in prison for his massive Ponzi scheme that bilked investors out of billions.
In a lawsuit, the trustee accuses the team owners of making $300 million more than they invested. He wants the Mets to return the sum to compensate investors who lost their original money.
But a lawyer for the Mets owners' firm, Sterling Equities, argued before the federal appeals panel that the law allows them to keep whatever amount appeared on the fictitious account statements.
Those who made money in the scheme claim they did not know about it and have a right to keep their profits.
A ruling is not expected for months.