Friday, September 4, 2009

Madoff Trustee May Seek Clawbacks from Charities

Bloomberg news reported this week that Irving Picard, the liquidator for Bernard Madoff’s investment business, said that he might sue charities that took out more money than they invested with Madoff’s company. “We will look at charities on a case-by-case basis before determining what action may be appropriate,” Picard said. While it will be difficult for charities to repay funds that are probably long since spent, I think it is at least reasonable for the trustee to look into recovering any of the "false profits" that may have been distributed to these organizations.

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