Wouldn’t that be considered fraudulent transfer, and wouldn’t it be easily accessible?
If these family members still have access to all that cash, I would think that by now they would have stashed it before the Feds. could get their hands on it. If not, I would think they aren’t very smart.
OPERATING LEGAL PRINCIPLE Under the legal doctrine of "fraudulent conveyance" investors who withdrew their money before the fraud was revealed, must return their profits or even part of their initial investments. Legally, one cannot profit from a fraud. The recovery process identifies remaining assets that are then redustributed to those who were defrauded.
Some of Madoff's clients should be facing serious legal problems----some investors were writing personal checks that were placed with a separate Madoff financial entity that was not listed on the SEC. That might be construed as money-laundering and tax evasion.
Keep in mind Bernie‘s investors were savvy, astute successful business people, accustomed to constructing, picking apart and analyzing financial statements. One investor who spoke to reporters was a stockbroker (her family invested with Bernie for generations---the family's patriarch founded the wildly successful Stop and Shop supermarket chain). Other investors gave Madoff $100-500 millions to "invest" for years and years.
FRepper dennisw turned us on to---"The Bezzle."
As extrapolated by American economist John Kenneth Galbraith: a certain amount of embezzlement is happening at any given time.....which falsely inflates an economy's total wealth.
Madoff's massive Ponzi comes to mind. The embezzler controls substantial resources but those he embezzled do not know they do not have those resources........both phantom figures are factored in, and flaunted as total economic wealth. Madoff operated in the global economy---his fraud impacts the far reaches of places great and small.
The Bezzle also reigned in the Dutch Tulip Mania (bulbs used as currency).......and the infamous buying-on-margin that precipitated the crash of 1929.
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Jack Ablin, chief investment officer at Harris Private Bank in Chicago said, “There are, unfortunately, no guideposts to a lot of the market to allow investors to get a better sense of direction of where the market is going, where corporate America is going.”
Balderdash-----this poster maintains that investors would gain confidence if they saw the crooks who cooked the markets do the perp walk----we would see the indexes rise, as a result of making the crooks pay for their misdeeds. Too bad see-no-evil Dems have taken over, and we have an *** like Holder at DOJ.
Obama is not going to allow "judgmental Republicanism," now is he?