Bernie Madoff, R. Allen Stanford, Tom Petters and other alleged con artists left big legal and financial messes to clean up. And where there are big financial messes, there’s big money to be made. And so the trustees appointed to straighten everything out are raking it in.
As The New York Post reports, the court-appointed receivers and trustees of firms whose principals are charged with fraud can make anywhere from $4,500 to almost $2 million a week in fees. In larger cases, the lawyers and financial experts can make $100 million total. As writer James Doran notes,
“While it is hard to pinpoint exactly what percentage of the total assets in any fraud will be eaten up by the professional fees of these “Golden Receivers,” in one recent $6.6 million fraud, the receiver distributed 43 per cent of the assets to the victim — the rest went to professionals. The percentage of assets eaten up by professional fees in the larger, $1 billion-plus cases, is expected to be lower.”
Regardless of the cut, there’s no shortage of work. Some examples of fees detailed by the Post:
Graphic: The New York Post
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