One response to “Madoff Trustee Asks Court to Determine Recovery Formula”

  1. Irving Picard, the Trustee of SIPC, is obligated to follow the statutes of the Securities Investor Protection Act (SIPA) of 1970. He is not allowed, nor entitled to make up new laws as he sees fit. His cash in/cash out formula was never followed in previous SIPC cases involving Ponzi schemes where the broker provided the investors with confirmations of the purchases of real (as opposed to fictitiously named) securities. Though Stephen Harbeck, the President of SIPC agrees with Picard (and no doubt has something to do with Picard’s stance), Harbeck has a long history (that he would probably love to rewrite) where he has supported in court the principal that investors are entitled to the balance of their last statement up to the maximum allowed, as long as was their “legitamate expectations” that this is what they expected. This would obviously leave out those investors who were getting 50% to 900% annual returns. There was nothing legit about that.

    It will be proven beyond a shadow of a doubt that the Madoff investors are correct in their assertion that cash in/cash out is wrong, and to date, Picard has never cited any law supporting his position. He has done everything to control the media and to ignore the intent of Congress that created this act in order to protect the American investor and thus restore their faith in the securities industry, which at the time of the act was at a low point for that era.

    A fair and impartial judge interested in supporting and upholding existing laws should rule in favor of the existing precedents. Madoff investors who have become impoverished as a result of the Ponzi scheme and the subsequent victimization by Picard, would now be given a chance to get their life back. Nobody is going to be made whole by this, but nobody expects to. The Madoff investors just want the existing laws to be enforced.