Should States Compensate Ponzi Scheme Victims? Montana and New Hampshire Think So.

In the nearly five years since Bernard Madoff’s infamous swindle was revealed to the world, Ponzi schemes have filled news headlines at an alarming and increasing frequency. While paling in comparison to the estimated $17 billion lost by Madoff’s victims, the losses incurred in each scam and stories of devastation are real, as membership swells in the ‘club’ of those swindled by the gift of gab. Chances of any meaningful recovery are typically bleak; victims on average recover approximately five percent of their losses through the efforts of court-appointed receivers, bankruptcy trustees, and government regulators. While restitution is often ordered by the scheme perpetrators, these obligations are typically nothing more than formalities as the scheme collapse nearly always results from a lack of funds. The experience is a painful and often life-altering lesson for those unfortunate enough to be involved. More on Forbes here.