Madoff investors may have to cough up profits

By David Ellis, staff writer


NEW YORK (CNNMoney.com) -- The man in charge of recovering funds for investors duped by Ponzi mastermind Bernard Madoff has a new target: Investors who profited from Madoff's crimes.

In an interview with the Wall Street Journal published Monday, court-appointed trustee Irving Picard said he was preparing to file lawsuits against half of 2,000 individuals who made money through their investments with Madoff.

The move would represent a new tack in Picard's efforts to compensate Madoff's victims. Thus far, most of his energies have been focused on recovering money from those who were closest to Madoff, including his family members, and from funds that invested with him as well.

"The people who made money, who got more, have made money at the expense of the people who didn't," Picard told the paper.

Picard declined to elaborate on the Journal report.

Some individuals who profited have told Picard they planned to settle. He also told the paper that he would exempt investors who can demonstrate that returning funds would leave them financially strapped.

Picard will have until the end of December to file any lawsuit looking to reclaim funds from that group of investors.

So far, investigators say they have confiscated about $1.5 billion worth of assets from Madoff's estate, which falls far short of the approximately $20 billion in investor funds that were lost to his scheme. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,672.60 -141.38 -0.79%
Nasdaq 4,757.88 7.48 0.16%
S&P 500 2,051.82 -11.33 -0.55%
Treasuries 1.82 -0.08 -4.17%
Data as of 6:48am ET
Company Price Change % Change
Bank of America Corp... 15.73 -0.36 -2.24%
General Electric Co 24.48 0.20 0.82%
Apple Inc 112.98 0.58 0.52%
Avon Products Inc 7.98 -0.68 -7.85%
Intel Corp 36.44 -0.46 -1.26%
Data as of Jan 23

Sections

Let's be blunt: The central banks have done all they can, and now it's 'sink or swim' time for the global economy. More

The National Hockey League is partnering with GoPro to get hockey fans closer to the action than ever before. More

Hershey has forced an importer to stop selling proper British chocolates in the United States, angering fans of Cadbury and Toffee Crisps. More

Tax season is prime time for cons. Tax scammers are sending out so-called "phishing emails" that appear to be from the IRS and claim that the recipient either owes money or is due a refund. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.