The Securities and Exchange Commission ("SEC") vs. Madoff Frequently Asked Questions and Downloads Relating to the Securities and Exchange Commission ("SEC") vs. Madoff I. Can the SEC Receiver sue me for money I received as distributions or redemptions from Madoff? The Court-appointed Receiver could file lawsuits against individual or institutional investors that invested in Bernard L. Madoff Investment Securities, LLC (“Madoff”). The lawsuits will seek payment of money the investors received when they redeemed all or a portion of their investment from these Hedge funds or by way of quarterly or annual dividends. The claims will be based on “fraudulent conveyances” and/or “preference” theories.   CONTACT US 24/7! Call (973) 951-3801 A fraudulent conveyance claim is brought under State law against an investor who received money from Madoff. A preference action is brought pursuant to Bankruptcy laws to recover money paid to investors while the debtor (Madoff) was insolvent. Even investors who redeemed their investment prior to disclosure of the Ponzi scheme will be subject to these claims.   II. How far back can the Receiver look to bring a claim against me or my Institution? A Receiver can “claw back” under New York law for a period of six years. Under the Bankruptcy laws, the claw back period is two years.   III. What are my rights if the Receivership Estate files suit against me or my Institution? Our firm has significant experience defending fraudulent transfer and preference actions and we have obtained excellent results in such matters. We will review the lawsuit and review your individual circumstance to determine whether you have an affirmative defense to the lawsuit and the best strategy to obtain a positive result. Call us.   Downloads Complaint (U.S. Securities Exchange Commission v. Madoff) Criminal Complaint (U.S. v. Madoff) Order to Show Cause Appointing Receiver and Freezing Madoff Assets Order Appointing Trustee and Referring Liquidation Proceedings to the Bankruptcy Court Madoff's Bail Condition Contact Us For more information about Madoff’s Ponzi scheme, your Hedge Fund manager’s duty to conduct due diligence, and whether/to what extent your losses may be covered by SIPC and CAPCO, or to discuss how Frier & Levitt, LLC can assist you in obtaining legal relief against Madoff through the SIPC and/or your Hedge Fund, please call us at (973) 535-1660, or toll-free at (888) Levitt-1 (i.e., 888-538-4881).

Berkshire Hathaway Inc Cramer Finance+ Financial Info  Financial People  Financial News Headlines  Gold+  Government Takeover  PROPOSED FEDERAL RESERVE BOARD RULE  Renaissance Financial Group, Inc.  Scottrade Solar Energy Stock Facts Stock Information  World Markets How Far Can I Look To Get a Refund for My Phantom Interest Income Paid Based on the False/Ponzi Statements? Investors who prove the theft loss may also be able to claim a refund for federal income taxes paid over the last two years on “phantom” interest income from their Madoff investments.  However, complicating this refund request is that the refund doesn’t apply for taxes paid on any capital paid back to investors.  Each case must be individually examined to determine whether any capital, as opposed to principal was paid back. It has been widely reported that Madoff maintained two sets of books.   The interest income inquiry may require a “reconciliation” of the Ponzi scheme’s false books, with the accurate books.  That reconciliation alone may take years to complete.   With respect to tax relief based on fraud, a formal determination that Mr. Madoff’s investment funds are bankrupt would go a long way to assist investors in proving to the IRS that there has been a “theft” within the meaning of the tax code.  Imagine what would happen if the IRS simply rejected the claims during the many years it will take to finalize a reconciliation of the true and illusory books?  That would not be fair to investors and we predict that legislation on this topic is likely.    Before claiming a deduction, investors must be reasonably certain that they will not recover their money from other sources. Proving that could take years, while investigators and regulators try to comprehend Mr. Madoff’s double entry books and lawsuits progress.  Assets recovered in law suits against Madoff or third parties, such as the prospect of insurance available to negligent Hedge Funds, could be a source of recovery for investors and that would diminish tax write-offs. We predict that investors will be successful in their theft-loss deduction claims, but that this process will take many years. How Do the Theft Loss Rules Work? Under theft-loss rules, investors can generally deduct 90 percent of their losses against their adjusted gross income.  Loses from a for-profit transaction, such as investing in securities, may be eligible for a 100 percent deduction. The rules permit losses stemming from theft to be deducted in the year in which the loss is discovered by the investor, even if it took place earlier. They also allow investors to carry back theft-losses for three years (26 U.S.C.A. § 6511) — one more year than under the rules for capital losses — and to carry losses forward for 20 years. Investors compute losses according to the adjusted basis in their investment, not the current fair-market value. Does Our Charity or Foundation Take Advantage of the Tax Deduction for Theft-Loss? Unfortunately, charities victimized by Madoff would not be eligible for any relief because they are exempt from taxes.