Cheated Madoff Investors Won't Get Checks Friday
Wednesday, September 28, 2011
A lawyer for Irving Picard, the trustee overseeing the recovery of money for cheated investors from Bernard Madoff's ponzi scheme, said a judge's ruling means that first payouts to investors won't go out as planned Friday.
U.S. District Judge Jed Rakoff ruling on Tuesday limited the amount that the owners of the Mets might have to return to $386 million. Picard had been seeking $1 billion.
Picard's attorney, David Sheehan, said Wednesday that this decision will effect other money being recovered for investors. He said the checks will be delayed for an undetermined time as lawyers study the impact of the ruling, but added they would go out by the end of the year.
According to Sheehan, about $6 billion of the $17 billion Picard is trying to recover for investors could be affected by Rakoff's order, possibly reducing a potential payout by as much as $3 billion.
Hundreds of investors lost billions in the multi-year fraud.
Picard had planned to distribute more than $272 million on claims related to 1,224 accounts, with an average payout of $222,551.
Madoff, 73, is serving a 150-year prison sentence.
With the Associated Press