Updated Madoff.com

In Documents, Helpful Information on January 8, 2009 at 11:27 pm

http://www.madofftrustee.com/ Is now updated with a lot more information

On December 15, 2008, the Honorable Louis L. Stanton, a Federal Judge in the United States District Court for the Southern District of New York, appointed Irving Picard as Trustee for the liquidation of Bernard L. Madoff Investments Securities LLC (“BLMIS”) pursuant to the Securities Investor Protection Act (“SIPA”) as set forth in the attached order. LINK

Mr. Picard supersedes Lee S. Richards, the previously appointed Receiver for BLMIS and all claims by customers of BLMIS will be processed by Mr. Picard as SIPA Trustee.

On December 23, 2008 the bankruptcy court entered an order authorizing the Trustee to mail customer claim packages and other claim information and to publish notice of the SIPA proceeding on or before January 9, 2009. That order also fixed February 20, 2009 as the date for a meeting of creditors. LINK

Beginning January 2, claims packages were mailed to investors/customers, broker-dealers, and general creditors. Claim forms and related materials are available for downloading on this site LINK and at SIPC.ORG. You may also request a copy via mail by providing your name, street address, and telephone number to 888-727-8695, or click here to submit a request for a Claims Package.

Claims will be determined by the Trustee and a written determination of any “customer” claim will be mailed by the Trustee to the claimant. To be allowed under the Securities Investor Protection Act, a “customer” claim must be supported by the books and records of BLMIS or otherwise established to the satisfaction of the Trustee.

Mr. Richards continues to serve as Receiver for Madoff Securities International Ltd. pursuant to the attached order. LINK

The Trustee Irving Picard has engaged Lazard Frères & Co. LLC to assist in the sale of the market making and proprietary trading operations of Bernard L. Madoff Investment Securities LLC.

Should you have further questions, please contact the Trustee at the following number: 888-727-8695, or via email at Email General Questions.

  1. Another $20 billion for Bank of America???

    How about . . .

    The Madoff scandal is an American tragedy, as you woke up one morning and found out that all of your savings and your income were worthless. Now you could be homeless and starving . . . and robbed of a tiny remaining lifetime of dignity.

    Thousands of the elderly lost their life savings with Madoff as the SEC and FINRA, whom they counted on for their claimed role as the definitive regulatory overseers, were both casting for the part of Rip Van Winkle.

    If the U.S. Gov’t immediately paid each Madoff account a maximum of $5 million in settlement — based upon Nov 30, 2008 Bernard L. Madoff Investment Securities LLC end of month statements dollar value amount — in exchange for look back taxes paid & walk forward theft deductions, this would save the Government $billions, along with the cost and effort of the legal process, and, in particular and most favorably, avoid the excessive legal fees and the decade plus time of the adversarial legal process. [In addition, claw backs must be extinguished, to maintain the claw backs would also legally demand a claw back of ALL mortgage revenue flows as “fruits from a poison tree” if said Madoff claw backs were not extinguished. See: http://www.worldreports.org/news/108_subprime_slide_that_masks_fraudulent_finance%5D

    This would be a matter of the benefit to public policy, as a whole, and the immediate amelioration in the life circumstances of thousands of the elderly who, and most reasonably, thought that after so many years the SEC and FINRA were watching out for their honest interests in terms of both the brokerage and investment advisory/power of attorney fiduciary responsibilities of Bernard L. Madoff and of Bernard L. Madoff Investment Securities LLC.

    For example, if the average individual account had a $2 million balance a/o November 30, 2008 end of month statement, and there were 5,000 such accounts [said 8,000 forms sent out by SIPC but many duplicates via separate addresses and accounts no longer with Madoff], the total amount paid by the U.S. Government to all account holders would cumulatively amount to $10 billion, which is an estimated $7 billion to $10 billion LESS than the total estimated $17 to $20 billion the U.S. Treasury will lose to tax refunds & theft deductions, not including the judicial resources that will be consumed by all forms of litigation.

    I therefore recommend that my suggestions should be adopted immediately, without haste, as an alternative to many years of questionable & costly civil actions, complaints, and cost to the U.S. Treasury. Time is one thing the elderly investors do not have.



    “I want to make three preliminary but vital points. As you will see, the current law is seriously ill equipped to remedy this horrible [Madoff] situation. Such a disaster as a $50 billion dollar Ponzi scheme that wiped out thousands, left old people destitute by the many hundreds or thousands, destroyed or injured charities, injured pension funds, and demolished confidence in the market was simply never foreseen by the law and never prepared for in the law.

    As well, many of the investors in Madoff were people who did exactly what is supposed to be done in a capitalist system. They worked like dogs all their lives, they saved up a million or two million dollars for their old age, and then invested it with someone whose eminent positions, leadership in the financial world, and decades of putative success made him seem eminently trustworthy; and they depended upon government — upon the SEC — to protect them against a fraud, particularly because their own ability to ferret out Madoff’s scheme was very limited or nonexistent.

    Protecting against fraud has been the SEC’s duty to citizens, its duty to them, since its creation in the 1930s, and small people, as said, had no ability to ferret out Madoff’s scheme on their own. These are not the billionaires, or the huge institutions, that could hire expensive experts in due diligence. Nor did they even know that such due diligence experts-for-hire existed. These are the plain people who worked hard and saved all their lives, as capitalism says they should, and who, as so many legislators and witnesses said at the hearing of January 5th, depended on their government to protect them and had every right to do so, but were failed by their government, were horribly failed by it, because of one of the most willfully negligent, incompetent, and perhaps even complicitous courses of action any agency has ever engaged in.

    Finally, there is this. Several have indicated to me that there is a current of prejudice running through the position of those who say the government should do little or nothing to alleviate what Madoff did to people and that it is politically unpalatable to help the victims. The idea underlying these comments is that people think that those who suffered are just a bunch of rich Jews, so the hell with them. This is sheer anti-Semitism. It’s also wrong on crucial facts. Yes, there were very wealthy Jews who lost fortunes, the kinds of people who, along with large institutions, the mainstream media has so extensively focused on. But there were lots of small people in their 60s and 70s and 80s [and 90s] who now don’t know how they are going to live. There were lots of people who aren’t Jewish. There were small charities that sponsored vital medical research that has and will benefit billions of people of all races and religions. There are pension plans for firemen. And the refusal, the claimed unpalatability, of helping the victims of Madoff contrasts badly, does it not, with the fact that huge banks, investment houses, huge insurance companies, and giant auto companies, each of which was itself worth scores or hundreds of billions of dollars, are each receiving scores and even hundreds of billions of dollars in bailout monies, are receiving it although these companies and their executives, who make tens and scores of millions each year, were not victims of any fraud or illegality, much less criminal fraud or illegality that the government had a duty to stop, but instead made stupid, greedy decisions that ran the companies into the ground — decisions, moreover, perpetrated by the very executives whose multimillion dollar salaries will be saved by the bailouts, whose salaries of ten and twenty million dollars and more will be saved by the bailouts.”

    Lawrence R. Velvel, Dean of the Massachusetts School of Law

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