A federal judge shot down an appeal from Madoff investors who didn’t just want the money they’d invested back, they wanted the amount of money Madoff said they were worth on paper. The judge said that Madoff’s financial statements were “fictitious” and thus can’t be used as a basis for claims by investors.
The judge wrote that using the financial statements Madoff issued investors as the basis for determining how much money investors should get back “would have the absurd effect of treating fictitious and arbitrarily assigned paper profits as real, and would give legal effect to Madoff’s machinations.”
CNN reports that the attorney appointed by U.S. Bankruptcy Court in Manhattan has only been recognizing “net equity” claims, which are people who deposited more money into the fund then they withdrew.
Guess greedy people who fall for a guy who says they’re 10% returns each and every year don’t stop being greedy just because the ponzi schemer is in jail.
Judge to Madoff investors: You’re not worth that [CNN Money]