Steven Spielberg, John Malkovich, and Kevin Bacon are just three of the most famous faces of the deceit by Bernard L. Madoff, but the total number of people affected has not been known. Yes, you know the amount of money that has been made: $ 65 000 million. Right today marks 10 years of arrest in the New York financier when he revealed the largest pyramid scheme in the history of the United States.
Talking about the amount of money that is being made is no longer imaginary. This $ 65,000 million were assets allegedly administered by Bernard L. Madoff Investment Securities LLC, the financial manager, in December 2008, when the fraud was opened after Madoff's children were denounced.
On the same day, the SIPC Asset Assurance Fund instructed a professional liquidator to try to recover as much money as possible from Madoff's clients. The chosen was lawyer Irving H. Picard.
Picard, under judicial supervision, spends a decade in a comprehensive judicial analysis of who has put money into Madoff's manager who has withdrawn funds … and has filed lawsuits around the world. Your results so far are excellent.
After an in-depth analysis of the movements involved, Picard and his team found that Madoff's clients had invested $ 19,000 million (far from the fictitious 65,000 million that appeared in the balance sheets).
Once the amount to be recovered is fixed, the liquidator has focused on the request of customers who have withdrawn money from the manager before the thymus discovery.
"In the pyramid created by Madoff, the value of the investments and balance sheets that customers receive each month are fictitious, so it was decided that the claims were based on actual deposits made, withdrawals of money, and the bankruptcy court adopted this methodology" , Picard explains in a statement issued two weeks ago.
"Some of Madoff's clients have never withdrawn money while others have received large sums but these are not investment money but money stolen from Madoff by other clients Part of my mandate has focused on asking those customers to return the money, which they blame, "says the attorney.
From the targeted 19,000 million liquidators have already recovered $ 13,300 million (70%). Picard estimates he will be able to regain $ 4000 million in coming years, which will reach a 90% recovery rate.
When the liquidator went to work in 2008, assets in cash, bonds and stocks did not even reach 650 million euros. After appointing a battalion of attorneys, he has taken legal action against banks and fund managers who have for years redirected their clients to Madoff's manager, promising a high return. Spanish Banko Santander was the second largest investor to be affected by $ 3 500 million of its private banking clients.
The collapse of the pyramid was very fast. Madoff pleaded guilty and only six months after his arrest he was sentenced to 150 years in prison.