Investors in Bernard L. Madoff's giant $50 billion self-declared Ponzi scheme may have a lot more to lose than they think.
Those who redeemed all or part of their investments in Madoff's investment advisory business could be forced to return the money if it is found they had an inkling fraud was taking place. An investor can only keep money that was withdrawn if it was done in good faith.
"If the person requested the redemption and got it because they thought the fund was going under, it was not taken in good faith," says Stephen J. Nelson, a corporate attorney and partner at the Nelson Law Firm LLC.
911truthnews: Madoff Charged in $50 Billion Fraud at Investment Advisory Firm