Madoff compensation scheme ruling expected
A judge in the UK is set to rule on a potential compensation scheme for those investors involved in the Madoff Ponzi scheme which spectacularly collapsed back in 2008. The court-appointed trustees are in the process of recovering assets on behalf of Madoff investors although there is some debate as to whether those who withdrew more money than they invested should share in any potential compensation payouts.
On the surface it would appear to be fair and reasonable in compensating those who have lost money rather than compensating those who took out more money than they invested in the Ponzi scheme. However, a number of "net gainers" (estimated to be around 2,500 accounts) have stepped forward with legal representation claiming that any compensation should be spread amongst all investors, whether or not they have lost out financially.
A UK judge will soon rule on the issue with the 2,335 Madoff accounts showing a "net loss" obviously hoping to get a larger share of the compensation pie. However, it is proving difficult for the trustees to locate and take control of various Madoff assets which have disappeared or are proving nearly impossible to trace. Even though investors believe the Madoff funds held around $65 billion worth of securities, the compensation fund will be nowhere near this kind of figure!
Share this..
Related stories
Government set to hit the 'City fat cats'
In a move which smacks of hypocrisy we have seen Gordon Brown declare war on the City fat cats at a time when he will literally do anything to push the limelight away from himself and his uncertain future. Do not forget that Gordon Brown is set to attack the very people who are often invited to produce reports for the government, hold regular meetings at Number 10 and until a few months ago were...
Read MoreMore spin and intrigue regarding car scrapping scheme
Despite the fact that Alistair Darling has apparently taken control of the scheme which will see £2000 paid to those scrapping cars over nine years old, there are conflicting reports today regarding the Treasury's stance. With Peter Mandelson behind the scheme, there are concerns that rumours were circulated to put pressure on Alistair Darling to make the scheme a centrepiece of his forthcoming b...
Read MoreSerious fraud office set to probe Madoff UK business
US fund manager Bernard Madoff is set to see his UK operation come under extreme scrutiny from the SFO as the investigation into his worldwide activities continue to grow. He is currently at the centre of an alleged $50 billion fraud in US where it is alleged that investment funds which caught the eye in some of the richest investors in the world were nothing more than pyramid schemes.
Is George Osborne heading down the Irish route?
News that the Irish credit rating has been reduced by Moody's was not necessarily a surprise to investors but it does place the UK economy on a similar path. Despite the fact that the Irish authorities introduced various austerity measures some time ago the financial structure of the Irish setup has been weakened, hence the reduction in the credit rating. So is the UK really on a similar path?...
Read MoreWho will win the battle of the taxes?
As both Gordon Brown and David Cameron set out their thoughts on the future with regard to taxation levels in the UK this is turning into something of a battleground with the winner set to take all. There seems to be a growing consensus that tax cuts or at the very least adjustments to current tax allowances are required to put more money in the consumer's pocket and try to stimulate the economy.<...
Read More