Madoff Losses Could Be Closer to $20 Billion

Investigators say Bernard Madoff has told them he has lost $50 billion in investors’ money, but the figure, like Madoff’s earlier reputation for financial prowess, may be larger than life.

Some people involved in the case believe the real amount lost could be closer to $20 billion, the Associated Press reports. The actual figure won't be known until July 2, the deadline for investors to file claims with the trustee.

Harvey Pitt, former chairman of the Securities and Exchange Commission, told the wire service that Madoff "probably inflated the amount of money he had under management," and actual losses could be below $17 billion.

Other observers said the $50 billion figure likely includes fictitious profits Madoff had claimed he made for investors. Among those holding that opinion are Stephen Harbeck, president of the Securities Investor Protection Corp., and Long Island accountant Alan Weiner.

The $50 billion "appears to be a number that [Madoff] just threw out," Weiner told AP. "It could be the total value on all the fallacious statements. I don't think it represents the cash that people put in."