Madoff Continues to Punish Victims from Behind Bars

Cash losses by investors in Monster Bernard Madoff's Ponzi scheme have jumped to $21.2 billion from the $13 billion in June, says the trustee overseeing claims. Victims have received allowed claims of $4.4 billion  - about $1.4 billion of which has been recovered - and advance payments of $534.2 million.

(NYTimes.com) The total of cash losses by investors in Bernard L. Madoff’s giant Ponzi scheme has climbed to $21.2 billion, the court-appointed trustee overseeing victim claims said Wednesday. That is significantly higher than the tally of about $13 billion provided to the court by federal prosecutors when Mr. Madoff was sentenced for his crimes at the end of June, The New York Times’s Diana B. Henriques reports.

Both figures represent the total of the cash losses sustained by the roughly 2,300 accounts held by investors who put more into the scheme than they withdrew over time. Holders of another 2,660 accounts withdrew more than they had deposited.

These cash losses contrast with paper losses in the fraud of almost $65 billion, which includes the fictitious profits Mr. Madoff added to customer accounts over the years. That was the total of all the account statements that Mr. Madoff mailed to customers last November.

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