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Madoff Trustee: No Stock was Ever Bought


Two weeks.That's how soon letters could go out to the 2,350 investors who have filed claims with the trustee who is liquidating the assets of Bernard Madoff's securities firm. Irving Picard said this morning that he has recovered about $650 million, but has found no evidence that securities were ever bought for Madoff's customers. Picard said he's plowing through 7,000 boxes of documents and trying to uncover accounts at Madoff's offices.

What investors can hope for will not be any sort of restoration of what they thought they had with Madoff. The trustee said he'll be looking to pay claims based on the amount of cash put into Madoff's firm and the amount investors took out. Their statements of what their investments were worth won't be used. One investor asked if they could get interest on what they'd put into the firm and the answer was no, because that's not allowed under the provisions of the Securities Investor Protection Act.

Maximum payout: $500,000 from the Securities Investor Protection Corp. for now. They may be more later, if the trustees uncover where Madoff put their money.

But the likely scenario is that everyone will "share the pain" of not getting all their money back.
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Categories: Madoff (14)
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About the author
You've got the job of managing your money. No one in school taught you how. But you and I, we can teach each other, how to handle it, how to save for retirement, how to make money last, how to educate the kids, how to make a budget work. The conversations I have with my readers are fun. Money's important, but discussing it does not have to be boring.

Harriet Johnson Brackey Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.

Brackey has worked at Business Week magazine and at USA TODAY, where she was a founder and part of the original staff of the Money section at the country's first national newspaper. After nearly 11 years there - spent covering the 1980s bull market, the insider trading scandals, the 1987 crash - Brackey left Washington, D.C., and came to The Miami Herald. She spent the next decade writing a column about personal finance that chronicled the stock market's Internet boom and bust, as well as the popular Money Makeover features.

Brackey also has done commentaries for Marketplace Money, which airs on National Public Radio and The Nightly Business Report which is broadcast on more than 250 PBS television stations nationwide. She also has been a radio guest on WLRN’s Miami Herald News.
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