Madoff trustee: No securities bought for customers in 13 years

MarketWatch ^ | Feb. 20, 2009 11:44 a.m. EST | MarketWatch

[Ernest_at_the_Beach]

NEW YORK (MarketWatch) -- The trustee liquidating Bernard Madoff's investment firm says his investigation has found no evidence that any securities were purchased on behalf of customers in at least 13 years.

Speaking at a meeting Friday morning of Madoff's customers, the trustee, Irving Picard, said the firm's customers can recover up to the $500,000 they're entitled to under the Securities Investor Protection Act. Customers who've lost more than that amount can also share in assets recovered by the trustee.

Picard was appointed under the Securities Investor Protection Act, which governs failed brokerages. He is liquidating Madoff's firm, Bernard L. Madoff Investment Securities LLC. Picard said he's received claims from 2,350 customers so far.

[Ken H]

Should have called it Seinfeld Investments - they invest in nothing.

[SecAmndmt]

“It makes one wonder how much of the *entire financial system* is actually “smoke and mirrors””

Read up on the Federal Reserve.

[GOPJ]

I still want to know who was getting the “18%” returns and who was getting the “5%” returns. Since it was all made up - who benefited the most? My bet? Spielberg the multimillionaire was getting his money doubled every 4 years...

[lainie]

And not just Madoff.

US government has questions to answer

Sir Allen Stanford's alleged multi-billion dollar fraud has left the US government with "questions to answer," Democrat Congressman [Domestic Policy Subcommittee Chairman] Dennis Kucinich has said.

"We cannot let this thing slide ... until we find out how long the government knew about it, what was known, when was it known and why was the SEC told to stand down in its investigation, apparently by another federal agency."