Investors have become familiar with the names Madoff and Ponzi, they get the connection. But it is often new news to hear that there have been more than 500 other Ponzi schemes in the ‘Madoff Era.' A recent Forbes article recounts the story of Madoff and the nearly $20 billion lost through his scheme. It also describes a new Ponzi Database that tracks the damage inflicted on the investment community over the six year period from 2008 to 2013.
The damage was felt far and wide. More than 100 schemes collapsed in 2008 and 2009 as investors fled the market. Madoff’s was one of these. Between 2008 and 2013 more than 500 schemes failed, incurring more than $50 billion in losses.
Unfortunately, by the time investors are aware there is a problem funds are often depleted. Recovering even a portion of the investment can be difficult and time-consuming. There are legal avenues that can and should be pursued. A total of $6 billion has been recovered and distributed to Madoff investors, according to a report from Fox Business. Much of the most recent distribution comes from a settlement with JPMorgan Chase, according to the same report.
Recovery efforts typically focus on ‘clawing back’ funds from investors who received distributions early in the scheme. Additional funds can be recovered from any individual or institution that profited by association with the scheme. Financial institutions, for example, come under scrutiny if they did business with the schemers.
If you suffered a loss through a Ponzi scheme, there may be ways to recover. We have successfully represented victims of a range of financial frauds, including ESOP fraud and Ponzi schemes. Contact Donahoo & Associates for a free case evaluation.
Read the full Forbes article: A Ponzi Pandemic: 500+ Ponzi Schemes Totaling $50+ Billion in ‘Madoff Era’.