Madoff’s attorneys may file a plea of insanity in Madoff’s defense, saying he had multiple personalities after a mental break. Which one of his personalities absconded with billions of dollars?
Did Bernie Madoff Steal Your Money?
How the $50 billion scandal will affect average Americans
Anyone taking secret delight in watching fat cats lose their fortunes in the Bernie Madoff meltdown should put their schadenfreude on hold: you could get dragged in before the final tally is made. Pensioners, municipal workers, students on scholarship and middle-class Americans all are likely to be burned by the spectacular flare-out of Bernard L. Madoff Investment Securities. The scandal is estimated to have cost investors upward of $50 billion and may be one of the biggest Ponzi schemes on record.
“It keeps getting bigger and bigger,” says New York attorney Matthew Gluck, whose law firm, Milberg LLP, is one of several representing investors who believe they were wronged by the money manager now accused of fraud. “We’ve been getting so many calls, we’ve sort of lost count.” The records kept by Madoff’s firm are “utterly unreliable” and will take months to sort out, Stephen Harbeck, president of the Securities Investor Protection Corp., said on Bloomberg television. SIPC, which insures brokerage accounts, is helping manage the liquidation of the firm’s assets; it’s now in bankruptcy court.
Direct investors in Madoff’s firm number in the dozens, and you probably know who they are by now—they range from Hollywood players like Jeffrey Katzenberg and Steven Spielberg to international banks like HSBC and the Royal Bank of Scotland, as well as a slew of significant Jewish charities. But other investors may not even know that they have money invested indirectly with Madoff through private money managers, hedge funds and pension funds. Still others might become collateral damage: folks who depend on those investors for income.
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