Trustee: Madoff Bought No Securities for Investors
1:56 P.M.: UPDATED WITH NUMBER OF NEGLIGENT YEARS:
Some of the investors burned by Bernie Madoff, the self-confessed $50 billion Ponzi scammer, are meeting with the trustee assigned to sort out the mess right now in New York, and they just heard what some were probably expecting: Madoff was taking their money, but he wasn't buying any securities on their behalf.
For at least the past 13 years.
Evidently, Madoff was simply using their money to pay out other investors, in classic Ponzi fashion. It also means that all the statements that Madoff sent to investors detailing the many trades he was making on their behalf were as fictional as a James Frey memoir.
“We have no evidence to indicate securities were purchased for customer accounts,” said Irving Picard, the court-appointed trustee overseeing the liquidation of Madoff’s assets, the Associated Press reports.
Picard said he has recovered $950 million of the $50 billion loss so far.
February 20, 2009; 11:39 AM ET
Categories: The Ticker | Tags: Bernie Madoff
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