Trials & Litigation
Investors Buy Madoff Recovery Claims with Hope to Score Big
Posted Jun 4, 2010 5:06 AM CST
By Rachel M. Zahorsky
ASM Capital hopes its gamble to purchase the claims of Bernard Madoff’s Ponzi schemes at a discount will pay off in spades.
The New York-based financial consultancy has offered individual victims, charities and foundations an immediate 20 percent payout in exchange for the full claim. Or, claimants could accept a 16 percent up-front payment, with the claimant keeping 33 percent of future recoveries, the Wall Street Journal reports.
So far, ASM as approached people with claims allowed by court-appointed trustee Irving Picard—who previously indicated victims could see anywhere from around 50 cents on the dollar to less than 15 cents.
Although ASM's president, Adam Moskowitz, told the Wall Street Journal that calculating the amount of assets Picard will recover is "not an exact science,” the firm says it is currently working on deals with about a dozen investors.
Picard has recovered $1.5 billion to date. However, depending on current litigation to expand the pool of investors, the total loss figure could reach $60 billion.
Related earlier coverage:
ABA Journal.com: Repayment Plan for Madoff Victims Puts Total Ponzi Scheme Loss at $20B