Half of Bernie Madoff’s Clients Lost Nothing, Say Prosecutors

September 23, 2009

(ChattahBox)—Federal prosecutors for the Bernie Madoff Ponzi scheme case, told a shocked federal judge on Tuesday that a traditional restitution order would not be necessary, since about half of Madoff’s active clients didn’t lose money. Prosecutors said that the proceeds from the sale of Madoff’s assets were already agreed to be distributed between the schemer’s victims.

According to the court documents, about half of Bernard Madoff’s active customers didn’t lose money because they withdrew more from their accounts than they invested. The remainder lost money, because they invested more than they withdrew.

The Manhattan federal prosecutors dismissed a traditional restitution plan, as “impracticable,” considering the vast numbers of investors and the incomplete business records.

Federal Judge Denny Chin set a deadline of Sept. 28, for the prosecutors to finalize the restitution issues.

Ponzi schemer Bernie Madoff, 71-years-old, will spend the rest of his life in prison.

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