The world-famous Madoff ponzi-scheme is still taking its toll on the wallets of investors. Pay-out results released by the liquidation group in charge of the Madoff investments were not nearly enough for Hollywood actor John Malkovich, legal drama was inevitable in this case. Check out the full story, as well as pictures and video below!
Bernie Madoff’s Ponzi-scheme, which involved paying investors out of money he received from other investors (not actual profits from investments) was revealed in late 2008. Madoff had once been the chairman of the NASDAQ and was trusted with billions of dollars by investors, most of which was lost in the epic scandal.
Now, John Malkovich legal drama over the amount he was paid-out is targeting Irving Picard, the trustee in charge of liquidating the assets of the Bernard L. Madoff Investment Securrities LLC. His trust said:
“A customer generally expects to receive what he believes is in his account at the time the stockbroker ceases business.”
The amount invested listed on his final statement was roughly $2.2 Million. He was reimbursed $670,000. Quite a disparity!
The judge presiding over the investment liquidation approved a “net equity” valuation of investments. This means that investors are only eligible to receive a maximum equal to the total amount invested with the firm. Therefore, if a client invested $100,000 10 years ago, and saw that appreciate to $1,000,000 by 2008, that investor could only receive $100,000 under the ruling. Not even a consideration for inflation!
No wonder the Hollywood star is upset! Controversy has surrounded the asset liquidation process, as the authorities in charge of it make their income from the companies they liquidate. Therefore, the investors, lead by the Hollywood star, decry the method saying the liquidation company has an interest in redeeming the least amount of money for each victim.
In the end though, there is only so much money left in the aftermath of a Ponzi-scheme, so there’s no way everyone will end up satisfied. Do you think the John Malkovich legal drama is qualified? Let me know in the comments section!
Also, check out the pictures and video below!
Photos: www.wenn.com/Apega/Agent47, Lucie Vikova, Seskim