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People will be lucky to get cents on the dollar. Lost returns isn't even in the ballpark.
by slededit 9y ago
People will be lucky to get cents on the dollar. Lost returns isn't even in the ballpark.
- cm2187 9y agoThere still needs to be a way to allocate the recoveries. If investor A invested $100 in 1970 and investor B invested $100 in 2006 do they both get the same recovery?
- quickthrower2 9y agoAnd do you get inflation? or the "fake" returns? What if there are a mix of real and fake returns?
- x0x0 9y agoUnfortunately, they do. The conclusion was that, because for quite a period there were no investments, just a scam, that the law says money-in, money-out. In particular: > The accounting of "funds stolen" in this matter excludes inflation, interest, time invested, opportunity cost, and falsely reported balances. The interpretation of the laws do not consider time value of money when reimbursing lost funds. see https://en.wikipedia.org/wiki/Recovery_of_funds_from_the_Madoff_investment_scandal https://en.wikipedia.org/wiki/Recovery_of_funds_from_the_Mad...
- sjwright 9y agoThe key quote from that article: > "...no legitimate investments were made on the investors' behalf for at least the last 12 years..." It's unfortunate for the people who thought they were earning interest, but it wasn't earned; it was money stolen from other investors.
- x0x0 9y agoIt is worth noting, however, that apparently you can only clawback disbursements for the previous six years, so someone who invested in the 70s most likely did quite well via withdrawals.
- compsciphd 9y agoas this article says, based on the amount recovered (ignoring opportunity cost), people are getting much more than cents on the dollar back. It would seem that on average they've gotten around 2/3 of their principal back.