Will a Bankruptcy Filing for Madoff really protect his victims?


It has been suggested that permitting Bernard

Madoff to file bankruptcy will help those who

invested with one of the many big hedge funds

that lost money in his Ponzi scheme.

I question whether this is true for those investors

in the feeder funds who may be only unsecured

claimants falling very low in the bankruptcy

waterfall. 

Don’t you think that these investors would be

better served through a asset forfeiture or fraud

proceeding alleging securities law violations for

failure by the principals in these feeder funds to diligence

the Madoff investments and find out that fraud

was occurring over many years? 

 

Dean Marsan

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