This can’t be too shocking, since Bernie Madoff took old ladies’ retirement savings in the months before his collapse, but it’s still crazy that just six days before he was arrested, Madoff collected $10 million from a NY family.
Now that company is suing the Madoff trustee for a full recovery, using the argument that since the money was not supposed to have entered the fund until January 1 (Madoff told them it was temporarily closed, but that they could wire the money early), it couldn’t have got lost in the Ponzi. Problem is, the January 1 date was a lie just like everything else. If Madoff had actually been running a fund that collapsed in December, then it’s easy to see how an investor, who was told that his money would not be used until January 1, would have a claim if he was told his money was gone. But since the whole thing was a big theft, it’s hard to imagine why he’d have a more privileged claim than any other loser.