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.
Madoff invested $2.2 million in a biotechnology company called Stemline Therapeutics (STML), which went public on Tuesday in the first biotech IPO this year, according to the New York Post.
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.
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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.
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!!!!
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