Judge upholds payback formula for Madoff victims

March 02, 2010

NEW YORK - The victims of Bernard Madoff's massive swindle are only owed the money they invested with his firm and not the $64.8 billion reflected on fictitious statements, a Manhattan bankruptcy judge ruled Monday. The written decision by U.S. Bankruptcy Court Judge Burton Lifland rejected the victims' arguments that they had legitimate claims based on "securities positions" listed in final Nov. 30, 2008 statements. It upheld a "net equity" formula being used by a trustee overseeing the liquidation and distribution of Madoff's assets. Records from Madoff's firm "expose a Ponzi scheme where no securities were ever ordered, paid for or acquired," Lifland said.

- Associated Press

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