Group: $231M Set Aside for Madoff Victims

(CBS/AP)  A group funded by the securities industry has set aside $231 million to cover claims by Bernard Madoff's burned investors.

The announcement was made Wednesday by court appointed trustee Irving H. Picard and the Securities Investor Protection Corporation.

The court has allowed 543 claims, totaling $2.972 billion, submitted by investors of Bernard L. Madoff Investment Securities LLC.

Madoff has been sentenced to 150 years in prison. He pleaded guilty in March to charges that his investment advisory business was a multibillion-dollar Ponzi scheme that wiped out thousands of investors and ruined charities.

Meanwhile, CBS News has learned more than 100 subpoenas have been sent out by federal prosecutors in the Madoff case, as criminal investigators turn their focus to at least 10 others likely involved in the largest financial fraud case in Wall Street history.

It is likely that criminal charges will be brought against as at least 10 individuals in the multi-billion dollar Ponzi scheme, a person familiar with the investigation told CBS News.

Everyone close to Madoff's securities firm has been or is currently under scrutiny, including family members and business associates, the person said.

Complete Bernard Madoff coverage:

Feds Cast Wider Net In Madoff Case
Madoff Feels Remorse, Lawyer Says
10 More To Be Charged, Source Says
Madoff Sentenced To 150 Years In Prison
Ruth Madoff: "Embarrassed And Ashamed"
Madoff's Fraud: A Family Affair?
Transcript of Madoff Sentencing
Analysis: 150-Year Sentence "Grossly Unfair"
Court Sketches: Madoff Sentencing

[Jimmy371]

Bubkes! These thieves can afford a lot more.

[hamiltongrad]

I don't think that idealism is out of fashion. We can do better as a society, taking the blame we deserve, dialogue and understanding, not Blame or Punishment is the first step, in all matters.

[darthcheney345]

by hamiltongrad July 1, 2009 1:19 PM PDT
I too believe in accountablity. ...My belief is that we are all to blame
------------

Yes, we are all to blame for re-electing most of the criminals in Congress and for voting in this incompetent nerd for president.

I include myself, because I voted for this president. But at least I'm willing to admit it was a mistake and that I deeply regret it already.

I, for one, will never vote for any Democrat ever again for as long as I live. I will do my best to vote out the Democrats in the next election, even if it means voting for Darth Cheney with Newt Gingrich as his running mate.

The Republicans thoroughy disgraced themselves last year, but by the next election, the Democrats will look even worse. If a viable alternative doesn't appear on the scene by then, the ball will be back in the Republican court, just like it was in 2001.

And the Libertarians are NOT a viable alternative. Alan Greenspan destroyed their credibility.

[darthcheney345]

I figured out the problem with our economy.

It's been like Michael Jackson.

We all knew it was extremely unhealthy.

But it kept putting on dazzling displays of razzle-dazzle - but no substance.

Madoff seemed to be making money appear out of thin air. Alan Greenspan told us derivatives didn't need to be regulated, operating under his Libertarian agenda of free market self interest. Banking deregulation was approved with overwhelming bipartisan support.

But is was all just smoke and mirrors. The razzle-dazzle was just a sham.

Now our economy has collapsed with cardiac arrest. All that razzle-dazzle with no healthy substance overloaded the system.

Now our economy is DOA.

And all the idiots do is blame Bush.

They just don't get it.

[hamiltongrad]

I agree 100 %. So, now what. Put people in jails or reform the system ? Pres. O has proposed reforming credit cards contracts, and Now Sen Dodd is on board. Where was Dodd all this time as chairman ? getting money from the banks for his "fun run" for President. And who gets to keep those campaign funds for Dodd. you see, what MAdoff did is not so unusual or even unique. That is why reform is needed, not punishment, not certainly 150 years in jail.

That is a distraction. And anyway, honestly, punishment is never the answer.

[darthcheney345]

punishment is never the answer.
-------------

I feel like punishing you.

[hamiltongrad]

The gov't which failed all the investors should come up with a total bailout to right this wrong, and fold it into the "stimulus" bill. These people will go on with their lives and spend as before, so that the money will continue to be in circulation. Why not. I would rather have these hard working people get their money back, vs. giving it to non productives with a history of poor choices, or drug use.
STIMULUS by making them whole.

[darthcheney345]

***** TROLL ALERT TROLL ALERT TROLL ALERT *****

hamiltongrad is a known prankster. Ignore all posts from hamiltongrad.

[hamiltongrad]

NOT TRUE. I am very serious. I feel awful for all these people, and the SEC is no where in sight. It is nor fair. Since I do not believe that any investigation will happen re SEC I think that there is a moral obligation of the govt to take care of these and other people who are ripped off by business investments that the SEC has given an OK. It is much like buying tainted mild or meat, which is supposed to be "watched" and given an OK to eat. When people die, who is to blame ? Everyone involved is the answer. Same here. This may make our gov't more careful, and less "cozy" with those special interests that they are suppose to monitor. I would like to see an investigation of the SEC and other agencies that are supposed to keep us safe, on all fronts.
That I am not a pure right or left, ok I am not, I am a true progressive.

[darthcheney345]

WHO are the other 10?

How many of them are named CLINTON.....???

[hungry1968-15]

I want to know why his wife - THE Madoff Inc bookeeper - gets to keep over $2 MILLION!!!






If she spends $40,000 / year, that will last her 50 YEARS!!!

Why does she get to live the rest of her life comfrotably, but their victims don't?!?!

[DaBroiler]

Because the court could not trace that money back to the Madoff Investment firm.

[darthcheney345]

Because the court could not trace that money back to the Madoff Investment firm.
--------------------
Which indicates money laundering.

Where else did she get money?

[bluharley]

I wonder how much the lawyers got?

[darthcheney345]

They got the rest of the $15 billion of the money that ever actually existed.

[John_Merritt]

That might buy them lunch at the Ritz.

[goosfraba2]

On the one hand, "investments" in the stock market are nothing but legalized gambling. Sometimes you win, sometimes you loose. (Imagine if the U.S.A. had obliterated Social Security and forced all of its citizens to "invest" in the stock market as their sole means of retirement and lost it all to a Ponzi scheme or volatility in the stock market.) However, Ponzi schemes should be handled a little different since it was criminal action which destroyed so many lives.

ALL members of the Madoff family should be stripped of ALL their assets PLUS THEIR PASSPORTS and left penniless like Madoff, et al. left their victims. NO MEMBER of the family should be left with one red cent because we can be sure that Madoff made arrangements before he was nabbed to stash cash for his family in CONUS (continental United States) and/or offshore accounts. Booted out onto the streets with just the clothes on their backs, they would have to secure employment, if anyone would hire them, and restart their lives, ... just as their victims have had to do. Forced to wear ankle bracelets for easy tracking and investigated on a regular basis, government officials could ensure that none of the Madoff family mysteriously comes into money. Which government agency should be required to foot this cost? The SEC since "they" dropped the ball on the Madoff case AND they should recoup that money some how from the Stock Exchange.

[mnelsonix]

""(Imagine if the U.S.A. had obliterated Social Security and forced all of its citizens to "invest" in the stock market as their sole means of retirement and lost it all to a Ponzi scheme or volatility in the stock market.)""
______________
Not even GWB suggested that! There was an idea floating around to allow people the CHOICE to invest their SS dollars privately, but that will never happen in the good ole UNSA. (United Nanny States of America).

No one suggested the we, obliterate Social Security and force all of our citizens to "invest" in the stock market. sheesh bro get a grip.

No way we would do that! If we did, how could we maintain the Ponzi scheme called Social Security?

[mnelsonix]

I replied...it never showed up!