Monday, January 12, 2009

Double Standard - Madoff Style

Sorkin and Daniel Horwitz, who represent Madoff, have argued that jailing him would be unfair and wrong

On the other hand, retired construction workers who received pension payments may have to pay them back.

One of the big problems facing many investors—union pensioners in particular—is the issue of "clawbacks." Under recent court precedent, the trustee in charge of unraveling the mess, and recouping as much money as possible, can force investors who took money from Madoff through redemptions or other payments to return that cash.

A recent case labeled the receipt of such money a "fraudulent conveyance" of funds, meaning the redeemer received money that was produced as part of a fraud since this money was derived from the Ponzi scheme not a legitimate investment.

Union pension funds are at particular risk from clawbacks because they receive regular payments when members retire.

Morin told CNBC he has hired attorneys to determine if individual members who have received retirement money from Madoff have to repay the funds. The trustee in the Madoff case, Lee Pickard, has indicated that he is likely to seek the return of money from redeemers.
So, let me get this straight. Bernard Madoff stole the money of hardworking construction workers, many of whom are retired, with worn out bodies from working so hard that they can't even walk - knees gone and backs wrecked from working to attain the American Dream.Men and women who played by the rules and busted themselves to get the pension that would keep them going in their golden years.

Now, not only may they lose those pensions, but they will be asked to pay back any pension payments they have received through the years? This is a double kick in the teeth. Your pension is gone and anything you have received from said pension will have to be reimbursed. Like we've all been hoarding the money under the bed instead of paying bills, buying groceries, paying for medical insurance and generally try to keep our heads above water. UnFuckingBelievable.

On the other hand, Madoff remains in his ritzy Manhattan apartment, sending out for gourmet food, and is not required to do one damn thing, except to refrain from liquidating his assets.

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