Former Madoff Clients, Seeking to Retain Profits, Get Assistance From Madoff Himself

By:
Chris Gaetano
Published Date:
Jun 23, 2017
Gavel

Former clients of disgraced financier Bernie Madoff, defending themselves from a lawsuit on behalf of the victims of his multi-billion dollar Ponzi scheme, received some assistance from an unlikely source: Bernie Madoff himself, according to Bloomberg. The defendants are trying to avoid having to hand over profits that plaintiffs are saying came from the scam, which they are seeking in order to reimburse the numerous victims. At issue, though, is precisely when the scam first started. Madoff, testifying at the trial as a witness, said that prior to launching the scam in 1992 he was a legitimate securities broker. The defendants, who all profited from dealing with Madoff prior to 1992, said that because they made their money before the scheme began, their money should not be counted as illicit profits to be recovered. Plaintiffs, on the other hand, said that the scam started much earlier than that, at least the mid-70s. While recently-restored records may indicate that legitimate trading was indeed happening when they invested with Madoff, plaintiffs noted that the claim that the scam began in 1992 is based on the testimony of someone who has no trouble telling giant lies. 

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