Court Trustee Asks Former Madoff Clients to Return Money they’d Withdrawn

Former investment clients of disgraced financier Bernie Madoff have received legal requests to give back money they withdrew before Madoff’s Ponzi scheme – that involved nearly $65 billion in clients’ account records – collapsed.

From USA Today: An estimated 200-plus letters seeking return of the funds were issued by Irving Picard, the court trustee appointed to recover Madoff’s assets on behalf of the victimized investors, Ronnie Sue Ambrosino, coordinator of a website for Madoff victims, said Wednesday.

The requests had been expected following Madoff’s guilty plea last month..

Under New York state law, court trustees can seek recovery of withdrawals for up to six years, an effort known as a clawback procedure.

The move however, has ignited angry investor opposition.

“It’s absolutely horrendous that they’re going after people like this,” said Ambrosino, who estimates that she and her husband….lost more than $1.6 million to Madoff. “Where do they think the victims are going to get the money from? It’s crazy.”

Ambrosino said….that the requests raise the prospect of inflicting new financial damage on investors….

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