Who gets Madoff's $171 Billion?

[question everything]

http://news.yahoo.com/s/ap/20090627/ap_on_bi_ge/us_madoff_scandal

Bernard Madoff would be stripped of all his possessions under a $171 billion forfeiture order handed down only days before prosecutors seek to put the disgraced financier away in prison for the rest of his life.

U.S. District Judge Denny Chin entered the preliminary order Friday, ruling that Madoff must give up his interests in all property, including real estate, investments, cars and boats.

The forfeiture represents the total amount that could be connected to Madoff's fraud, not the amount stolen or lost, and the order made clear that nothing prevents other departments or entities from seeking to recover additional funds.

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His victims lost $50 billion, so the $171 billion is more than 3 times that amount.

:shrug:

[A HERETIC I AM]

1. Delete. Never mind.

[question everything]

2. From where, then this amount come from?

the $171 billion forfeiture order as reported in the story?

[A HERETIC I AM]

3. From the article;

"The forfeiture represents the total amount that could be connected to Madoff's fraud, not the amount stolen or lost, and the order made clear that nothing prevents other departments or entities from seeking to recover additional funds.

A call to Madoff's lawyer, Ira Sorkin, after hours Friday was not immediately returned. In a court filing in March, Sorkin said the government's forfeiture demand of $177 billion was "grossly overstated — and misleading — even for a case of this magnitude."

I deleted the text of my post because I think I misunderstood the premise of your question, but the answer as to who gets any settlement would be those who had accounts with him and lost money, i.e. claimants.

[question everything]

6. One reason I am asking is because we lost a lot of money with

Global Crossing. Spitzer, then NY AG, got Citi to fork several million dollars in penalty, or something, that went, I guess, to the state of NY general fund, instead of giving it to small shareholders who lost money because of Citi recommendations.

Yes, there was a class action suit where the lawyers, of course, got most of it. Shareholders got about 5% of the total claims.

And while the State of NY got the millions from Citi, the Federal government and local state treasuries lost because we took the losses on our income tax returns, $3K for several years.

This happens often. Major corporations are ordered to pay huge amounts in penalties that go to a government treasury, instead of the individuals who suffered from such actions.

[A HERETIC I AM]

7. I understand. It sucks. My own mother was an Enron shareholder.

She continues to get mail on the class action suits, but has yet to see a check (at least I don't think she's gotten one yet).

You're right in that the Attorneys do get a chunk but a large portion (most) of that $171B will never be recovered. Ever.

[damonm]

4. I'll take 0.01%...

I'm not greedy...

[Kaleva]

5. I nominate myself as I'm very deserving.