Comments on: Should Investors Who Profited From Madoff Scheme Return Their Money?

By: none

none — Fri, 23 Jan 2009 15:41:13 +0000

one thing you are forgetting is those that may have profited (even not knowing it was a scam) dont keep these millions laying around. that money is most likely invested some where else. Granted they could make them sell the stocks (for this example) to give back the money. What if several profiting people invested in the same stocks. Now with those stocks being sold the price drops on that stock, hurting that company and its investors. So what the government would also have to look at is what cost to the economy would it be to get that money back?

By: Andy

Andy — Sun, 18 Jan 2009 03:05:33 +0000

I would give the money back, because you really have no choice in that matter. Than I would file for tax refunds for all of the taxes I paid on the gains.

By: derringer

derringer — Fri, 16 Jan 2009 16:34:06 +0000

Its really more cut and dry than you think. Not only would I not submit that claim, but I would get ready to give back anything I made.

If you think, for one minute, that the Government will not go after people who profitted, you’re mistaken. They will do so just to get a small portion of the losses back, because it is one of the only places they can go to get these losses back for those who lost everything, including their initial investment.

There is almost no question that the ability to go back after previous investors that is maintained in a fraud ponzi scheme prosecution will be employed here… it almost always is. It is not a question of if those who profitted have to give back returns, but when…

By: thomas

thomas — Fri, 16 Jan 2009 05:32:30 +0000

Five words sum up how I feel about the investors – If you know, you owe.

By: the weakonomist

the weakonomist — Fri, 16 Jan 2009 03:33:45 +0000

Say you bought a $20,000 car from a dealer who stole hem from other dealers. The thief was caught and the government made you return the car. But because the $20k you spent on the car was blown by the thief you get nothing.

Now who lost?

All that does is shift the loss from one victim to another. No way.

By: Kristy

Kristy — Fri, 16 Jan 2009 02:42:33 +0000

I think I would give the money back and file a claim for the amount I originally invested. By keeping that money, they are ripping off other investors. Just because they are “victims” doesn’t give them the right to victimize other people further. And, aa is right. Sooner or later, the regulators will call. It’s probably better that they NOT have to call you.

By: souprmage

souprmage — Thu, 15 Jan 2009 23:13:40 +0000

I would consider all of the money in the fund as ’stolen’ since it was given under false pretense. As such, when you are in possession of stolen property, you are required to give it back, regardless of the amount it originally cost. Keeping the stolen money is no better than what Mr. Madoff has done.

By: aa

aa — Thu, 15 Jan 2009 20:07:12 +0000

The phone call from regulators will ring sooner or later.

By: Miss M

Miss M — Thu, 15 Jan 2009 19:36:47 +0000

I saw the same story and I think it’s a tough call. They are recommending that those who did profit, lay low. If you came out ahead you should consider yourself lucky and not try to recoup phantom gains that never existed.

Also, I think this is different than buying a TV off the back of a truck, which has a high probability of being stolen. The too good to be true price gives it away. This is like buying the TV from Circuit City, you had no reason to suspect it was stolen.

By: Rassah

Rassah — Thu, 15 Jan 2009 16:23:59 +0000

I would treat this the same as buying a TV out of the back of a van. If it’s stolen property, it’s stolen property, whether you were aware of that or not, and thus should be returned (hopefully with your money being returned as well).