$2.5bn Madoff compensation goes unclaimed

Bernie Madoff

Ever since Bernie Madoff’s Ponzi scheme collapsed in 2008, it’s been much-rumored that investors included tax dodgers shielding money from the IRS, drug dealers who laundered proceeds through the con man and wealthy moguls hiding assets from ex-spouses.

Bloomberg News reports that after all, the scheme wiped out $20bn of investors’ money, but the victims’ claims for repayment total just $17.5bn.

Who would walk away from $2.5bn, and why?

Part of the answer may be far less mysterious or dubious than thought.

Almost half of the unclaimed money can be traced to a couple of Caribbean-based hedge funds. Their reason, while unknown, may have amounted to a calculated decision that any recovery on their $1.2 billion of claims would be tiny compared with what they might be forced to give back if they got tangled up in U.S. courts, according to lawyers familiar with the recovery process.

To access the complete Bloomberg News article hit the link below:

The Mystery Madoff Victims Who Left $2.5 Billion on the Table

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