Madoff makes millions on a real investment
Convicted Ponzi schemer Bernie Madoff invested in a legitimate biotech company and saw his stake double in value. Who gets the profit?
Convicted con artist Bernie Madoff, whose name has become a byword for swindler, actually made an investment that's paid off -- and it's all real.
With the company selling shares at $10 each, Madoff's $2.2 million investment was turned into $5.5 million.
Of course, most of Madoff's other "investments" turned out to be a sham. Madoff is thought to have masterminded the biggest U.S. financial fraud ever, convincing his clients that he was generating steady returns through his investing acumen. In reality, he admitted in court, when clients wanted to cash out, he paid them with money that belonged to other clients.
Madoff is serving a 150-year sentence in a federal prison.
The investment in Stemline Therapeutics may provide some relief to his victims, the Post notes.
A court-appointed trustee, Irving Picard, has filed a lawsuit against a Madoff family fund seeking to grab the winning investment on behalf of the victims. Madoff's son Andrew is the "interim manager" of Madoff Family LLC, according to Stemline's prospectus. The Madoffs own 515,203 shares of the company, or about 6.9% of its post-IPO shares, the regulatory statement notes.
Picard's suit states that the Stemline shares rightfully belong to Madoff's former clients.
Stemline develops treatments for cancer tumors and cancer stem cells, but has yet to bring in revenue from its operations, according to its prospectus.
More on moneyNOW
It is really too bad that every one of the crooks invovled with and causing the finanicial debacle are not breaking bread with 'ol Bernie in the big house. Oh, but then who would finance and funnel all the billions to elect and re-elect the crooks uh, I mean politicians?
Hope the profits can go to help the victims.
Big banks got way more than a slap on the wrist!! They got TAXPAYER FUNDED BAIL-OUTS / paid MINISCULE FINES / PAID MINISCULE IN SETTLEMENTS (approved by the bank supporting AG of Iowa / GOT TO RAISE FEES (generating even more profits on the back of the working men and women!!!
Compared to the big banks, Bernie, and his family are angles!!!!
It doesnt take a genius to figure out that this should not even be a debate. Any and all of Madoff assetts should have been frozen than and now to be given back to the losers of the scam he had going. Let this be a simple lesson if not already known. If you steal or take monies or property from anyone you are now and forever responsible to repay that debt..
To add to responses. The matter of giving back monies that investors actually made a profit is monies that should have been given back also if the money was stolen from others to pay the profit. It
would be no different if you knew or not. An example of this would be if you bought something that was stolen and you are found out it requires you to give it back to the owner. Cars are stolen and this
is an example of that. If you buy a stolen car you must give it back with no question. I know life is not always fair to everyone, even when they are trying to be honest and lawabiding citizens.
The lions share will be split with attorneys. The actual victims dont get crap
A class action law firm may get $10 million but each of the class members get a check for fifteen dollars and thirteen cents.
Class actions lawyers use us a placeholders in their suits against companies.
Enron was like a shark feed.
Well we ought to stop complaining and take back our government, you think its going to stop, this abuse of power has been going on for decades, but we get scared when people talk about revolution. if we dont stand up for whats right who will.
Madoff got 150 years for doing exactly what Social Security does every day.
It is a Ponzi Scheme.
Greedy rich investor went for big unbelievable retunes on their money to live king's lifestyle. They did and they lost like lot of day traders.
I have no sympathy for them. Crooks calling a crooks a crook, is their bottle. Government should not spend any money except for what may be their interest. Most these rich will right off as investment loss and get plenty kick back in taxes.
If they have problem, let private lawyers fight for them with their own arrangement.
Copyright © 2013 Microsoft. All rights reserved.
The good news: Bad weather means fewer drivers on the road, and they're going slower than usual. The bad news: It's still dangerous.
- 8 questions to ask before Mom and Dad move in
- High deductibles fuel new worries of Obamacare sticker shock
- How to use your credit card to donate to charity
- Try this instead of raising the minimum wage
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
[BRIEFING.COM] There wasn't a lot of excitement in the stock market today and there is nothing wrong with that. After rallying in broad-based fashion on Friday, the major indices stood their ground (for the most part) amid a lack of conviction from buyers and sellers alike.
Today wasn't a case so much of the stock market going up as it was a case of some influential stocks going up to keep the major indices on a winning path. In fact, decliners were just about even with ... More
More Market News
The photo-sharing site only has 10 employees, and it may be up for grabs.