Madoff Trustee Can’t Recoup Investments, Defendants Say

The liquidator of Bernard Madoff’s firm is barred by state and federal laws from taking back money invested with a brokerage, almost 300 defendants told U.S. District Judge Jed S. Rakoff in court papers. Madoff’s customers are entitled to interest, damages and opportunity costs in addition to their principal, and can keep deposits made in the two years before the con man’s Ponzi scheme collapsed, according to the joint brief filed in federal court in Manhattan. Rakoff has allowed the trustee, Irving Picard, to try to claw back fake profits received by investors during the two-year period. More on Bloomberg Businessweek here.

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