Victims of Bernard L. Madoff’s fraud can’t use the length of time they invested in his company to add interest to their claims seeking a share of about $1.4 billion in cash reserves, a judge ruled. Using “time-based” calculations might be unfair to creditors who are at the end of the line to receive payouts and could give a windfall to claims traders who weren’t victims of Madoff’s Ponzi scheme, U.S. Bankruptcy Judge Burton R. Lifland said today in Manhattan. Such interest would “likely have significant unintended consequences, including favoring certain investors who have already recovered their principal investments at the expense of other investors who have yet to recoup their principal,” Lifland said. More on Bloomberg here.
