Monday, June 8, 2009
Lawyers for some victims of the Madoff ponzi scheme are arguing that the SIPC Trustee should recalculate investors' losses to increase the investors' recovery, according to the New York Times. The Trustee is using the conventional method of calculating damages in a ponzi scheme -- the difference between what the investor invested and what the investor withdrew, over the life of the account. Instead, the investors argue, damages should be based on a total inflated fictitious account value. The difference in the two methods is sizable. Since some investors made substantial withdrawals from their accounts over the years, they may not be eligible for any recovery under the SIPC method. Meanwhile, the deadline for filing claims is fast approaching -- July 2. NYTimes, Victims of Madoff Seek Claims Overhaul.