From the WSJ via Clusterstock, it seems that even investors who cashed out of Madoff’s schemes ahead of time may have to divvy up.
[B]ecause Madoff is thought to have run a Ponzi scheme, investors could get money back from other Madoff investors who already took money out,” said Brad Alford, who runs Atlanta-based investment adviser Alpha Capital Management LLC.
The bankruptcy court charged with the similar Bayou case held this year that investors who had pulled their money out of Bayou had to pay to give back profits — sometimes even some of their initial investments — to help offset losses by other duped investors.
The innocent paying for the sins of the guilty. A leitmotif for our times.
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