Let's assume that the Wilpon's actual investment ( cash put IN) with Madoff was say $100 mill, over time...THis is the missing number in the article..Further assume that they received fake statements over the years that their "investments" had grown to $750 mill, due to rolloing over and reinvesting the profits...and also, they had taken out, i.e. physically received checks for $48 mill..Thus they're claiming that they "lost" $750 mill.
Re the Mets, MLB has capital requirements for team owners. When the bought the team, and also, when the financed the new stadium, they obviously used the "value" of their Madoff accounts in their pwn financial statements. These are now as worthless as the Madoffs statements.
Also, whether or not investors roled over their profits or took them out as cash distributions, they had tax consequences, and will need to file amended returns. The IRS may have to reimburse some of the revenues collected, but they will fight that..and if, as you state, there were artificial losses generated to clean up the income, then many will have far bigger problems than just losing their money. They could face criminal prosecution for tax fraud. The trustee is attempting to treat ALL the experienced, knowledgeable BIG TICKET investors the same..IOW, assume that two different people each put in $100 mill over time..One let it grow, never took out anything, and had statements showing he was worth $750 mill, then was worth ZERO after the scam was exposed. The other put int he same amount, $100 million, let it grow, had statements showing he was worth $750 mill, but also, over time, had taken out $48 mill. The bankruptcy master is claiming, and IMHO, correctly, that the latter can't keep the $48 mill..since the whole thing was a sham...it must be clawed back..
AS YOU POSTED: The bankruptcy master is claiming, and in your opinion, correctly, that the Wilpons can't keep the $48 mill. Since the whole thing was a sham...it must be clawed back.
I also think the legal principle of “condonation” looms larger here.
Many of Madoff’s wealthy investors implicitly “condoned” Madoff’s actions---sometimes over decades. They willingly acquiesced to Madoff's activities in several ways:
(1) Sending Madoff enormous sums of money, sums that were spread out over time (some families invested for generations), even AFTER they had the opportunity to assess their investments;
(2) Referring other investors to Madoff (if the investment was so bad, why did they bring in other investors?);
(3) Taking profits out of the investment, rolling it over, or putting more money in;
(4) Writing PERSONAL checks to Madoff's subrosa spinoff vehicle that was not listed on the Securities Exchange (tax evasion and money laundering);
(5) Accepting, without question, Madoff’s obviously flawed monthly statements.
Since the Wiplpons had already been nailed in another Ponzi, they clearly knew the ropes----and how things worked in a crooked scheme.
RINO idiot George Will who was bashing Palin said Bud Selig was the best commissioner in baseball history. Steroid Bud Selig.
The vermin buying ball teams today is pretty sickening.
The NFL smearing Rush as a racist. NBA and MBL just as bad.
The big whales who invested in Madoff knew what was going on. They could have driven to the CPA’s tiny srip mall office to check them out.