A federal bankruptcy judge said victims of Bernard Madoff’s fraud are not entitled to interest or inflation adjustments on their claims, a decision that could speed the return of $1.36 billion to the swindler’s former customers. U.S. Bankruptcy Judge Burton Lifland in Manhattan ruled in favor of Irving Picard, the trustee liquidating Madoff’s firm, in concluding that it would be unfair to award “time-based” damages to victims of the Ponzi scheme uncovered at Bernard L. Madoff Investment Securities LLC. He said a contrary ruling would likely have “significant unintended consequences” by favoring investors who have recovered their principal over those who have not, and perhaps giving a “windfall” to traders of claims on potential recoveries from Madoff’s estate who were never victims of the fraud. More on Reuters here.
