Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Search for Jobs

Index Last Change % Change
Dow 21,001.78 237.89 1.15%
Nasdaq 6,028.49 44.67 0.75%
S&P 500 2,389.38 15.23 0.64%
Treasuries 2.33 0.06 2.51%
Data as of 3:00pm ET
Company Price Change % Change
Bank of America Corp... 24.20 0.57 2.41%
Freeport-McMoRan Inc... 12.86 0.62 5.11%
Chesapeake Energy Co... 5.46 0.08 1.39%
Express Scripts Hold... 59.06 -8.19 -12.18%
Advanced Micro Devic... 13.44 0.31 2.36%
Data as of 2:45pm ET
Sponsors

Sections

Dirt is the new black. Nordstrom, Neiman Marcus and Saks Fifth Avenue are all selling dirty jeans from PRPS for hundreds of dollars. More

The number of undocumented immigrants living in the United States has steadily declined over the past 10 years, amid a significant decrease in the share of Mexicans living in the country without legal status, a new report from the Pew Research Center finds. More

JetBlue took the top spot as passengers' favorite airline, followed by Southwest, according to the latest travel report from the American Customer Satisfaction Index. More