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Thursday, December 17, 2009

Ponzi: Should investors who got paid have to share with victims?

Federal Judge Paul S. Diamond says investors who got their money back from scam artists like Bernard Madoff and Joseph Forte ought to give part of that principal - not just their profits - to investors who were completely ripped off: "The winning investors' returned principal is actually the losing investors' money."

And Diamond's mad at the federal Securities and Exchange Commission and the Commodities Futures Trading Commission for letting early investors in Ponzi schemes keep their principal, even if they give up the interest they collected from phony investments.

It's what the government does, and it's "extraordinarily unfair," the judge said in his Philadelphia courtroom. Harold Brubaker tells the story here.
Posted by Joseph DiStefano @ 9:37 AM  Permalink | Post a comment
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About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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