Philip Barry is called Brooklyn’s Madoff because he ran a $40 million Ponzi scheme similar to Bernie’s.
Now, prosecutors in the case are take a page from those going after Madoff: clawbacks.
Investors who profited during Barry’s 30-year alleged scheme may have to give money back, even if they didn’t know it was a fraud.
NY Daily News: The bankruptcy trustee handling the case has launched an effort to “claw back” up to $25 million from hundreds of small-time investors who placed money with Bay Ridge investment advisor and accused Ponzi-schemer Philip Barry in the past six years.
Trustee Alan Nisselson will reportedly only demand money from investors who got back more than they put in. But unlike Madoff, where most suits are focusing on companies and charities, clawbacks in Barry’s case will come from individuals.
“It’s revictimizing the victims,” said investor attorney Alan Pralgever to the Daily News.
Image: www.nydailynews.com/Ward for News
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