A number of people whose employers made an investment in their retirement funds with Bernard Madoff won’t be able to recover liquidated money from Madoff’s firm. The reason was because they weren’t direct customers from the now-imprisoned scheme operator, according to a bankruptcy judge ruling.
The recent ruling made by Judge Stuart Bernstein of the U.S. Bankruptcy Court in Manhattan is the latest number of ruling blocking claims proposed by investors in feeder funds or retirements invested by Madoff.
Based on the ruling, Bernstein agreed with Irving Picard, a court-appointed trustee winding down of Madoff’s investment firm, saying that claims should be denied since individuals couldn’t provide evidence they’ve placed money directly to the firm.
Only a couple people who purchased claims replied to a court request asking more information on why they’re deemed as customers of Madoff.
$17.3 billion of estimated principal was missing in Madoff’s Ponzi scheme, which was exposed a few years ago.