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Thursday, October 31, 2013

On the criminal trial of Madoff employees, ongoing in Manhattan

Have you been following the criminal trial of Madoff employees ongoing in Manhattan?

Interesting things are coming out of it.  One question people have had is how trades were documented in customer account statements, as it is thought that for years Mr. Madoff was not making trades at all.

Newsday reports that a former employee turned government witness testified that he would come up with trading opportunities in the month prior to issuance of an statement that would yield returns needed to satisfy particular clients' expectations, then reverse-engineer trades to use on the account statement.

http://www.newsday.com/long-island/nassau/witness-says-madoff-had-trouble-with-basic-math-1.6355320

That makes sense insofar as the detail in customer account statement had to come from somewhere.

I have been handling Madoff-related litigation since 2009 when I published "On the Clawbacks in the Madoff Liquidation Proceeding" with Fordham University.  (http://law.fordham.edu/fordham-journal-of-corporate-financial-law/15845.htm)

My heart goes out to those affected by the tragic decisions Mr. Madoff made.  Being a lawyer in private practice, I have helped by helping those in need of counsel.  I wish I could do more.  I hope the criminal trial helps bring closure by answering THE question that has gone unanswered, which is: How could this have happened??

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