Who is a Madoff Victim? High-Stakes Question Gets Airing at 2nd Circuit

[WSJ Law Blog]

Who are the Madoff victims? It sounds like an easy enough question to answer, but it's not.



The issue took its star turn in front of the Second Circuit on Thursday, where former Madoff investors and Irving Picard (pictured), the trustee recovering money on behalf of victims, argued over who is in fact entitled to claim losses in the fraud.

The judges grilled attorneys for the investors on whether to uphold Picard’s decision to approve claims based on how much of an investor’s principal deposits with Madoff were lost, or whether Picard should instead use the much higher final account statements fabricated by Madoff.

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