Reports are begining to surface suggesting that even those who were lucky/smart enough to get out before Bernie Madoff’s Ponzi scheme was exposed might end up losing their money. Check out this dispatch from Reuters:
Disgraced money manager Bernard Madoff’s suspected $50 billion (33 billion pound) fraud scheme looks set to burn even those who pulled their investments out long before the scandal rippled into the global financial system.
Such investors may have counted themselves fortunate, withdrawing their money years ago to buy a house or to pay for a daughter’s education, and may have even sighed with relief because they ended ties with Madoff long before the scandal erupted late last week.
But they, too, could face trouble, lawyers say. Because of a legal concept known as "fraudulent conveyance," they could be forced to return their profits and even some of their initial investments to help offset losses incurred by others entangled in the long-running Ponzi scheme.