2nd Circ. Rejects Time-Based Damages For Madoff Victims

Law360, New York (February 20, 2015, 2:19 PM EST) -- The Second Circuit on Friday denied early investors in Bernard Madoff’s Ponzi scheme an inflation adjustment or interest on their claimed losses, finding no basis in the Securities Investor Protection Act for such an alteration to the existing victim payout formula.

A three-judge panel affirmed the position of Irving H. Picard, the liquidating trustee charged with mopping up the $20 billion fraud, that investors who long ago entrusted money to Madoff cannot receive a time-based increase to their so-called net equity claims.

Picard, who is trying to divide recoveries from a pie far smaller than the amount stolen, has opposed altering...

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