Bernard L. Madoff, the accused mastermind of a $50 billion Ponzi scheme, leaves Federal Court in New York, Wednesday, Jan. 14, 2009.
Investors bilked out of billions from convicted Ponzi schemer Bernard Madoff will learn what compensation, if any, they'll be able to recoup from his estate during hearings in Manhattan's Bankruptcy court.
The former investment bankers victims say he told them in 2008 they collectively had $65 billion of securities. Yet a trustee overseeing the Madoff estate estimates they may be receiving a smaller piece of the pie--putting the figure closer to $20 billion. Of that money, the estate trustee claims he's only been able to recoup $1.6 billion.
Yet some victims argue that since they were under the impression the disgraced financier was actually investing their money in stocks, they should be insured by the government, and believe they're eligible for up to $500,000 each.
Madoff was sentenced to 150 years behind bars in June. His trustee hopes to divide defrauded investors into 2 categories--"Net Winners", who unwittingly removed more money than they had in their accounts and therefore aren't owed anything, and "Net Losers", those who lost what their initial investment with Madoff, and are entitled to a share of the assets.