Skip to comments.Text of Madoff victims complaint against Mets owners
Posted on 02/05/2011 1:14:04 PM PST by NativeNewYorker
But the Sterling partners reliance on Madoffs consistent and steady returns ran further than just opening hundreds of accounts. Sterling used its BLMIS accounts as a substantial source of liquidity to develop and sustain its businesses, including professional baseball and real estate. For instance, much of the approximately $90 million of other peoples money withdrawn from the Mets BLMIS accounts helped fund its day-to-day operations. Sterling also used BLMIS returns to generate sufficient profits to meet capital commitments for its Sterling American Property real estate funds. Further, BLMIS returns provided the necessary cash flow to Sterlings internal bankSterling Equities Funding, a clearing house for the movement of intermingled funds and financial obligations between and among the Sterling partners, their families, and their related trusts and entities.
(Excerpt) Read more at nypost.com ...
They received the benefit of other peoples money. Now that's a laugh since a person that sells an asset high and the asset goes down in value later is held harmless, generally.
So the court must decide that this situation is not "general" and for how many layers.
For example, the Stirling's used the funds to purchase stadium improvements from a general contractor who profited handsomely. Is the contractor held harmless?