Crosby & Higgins LLP is actively investigating numerous possible investor claims related to the $50 billion fraudulent Ponzi scheme run by Bernard L. Madoff. On December 11, 2008 the FBI and the Securities Exchange Commission (“SEC”) arrested Mr. Madoff on charges connected with what appears to be the biggest Ponzi scheme in financial history. Ponzi investments are a type of fraudulent scheme whereby earlier investors are paid off with money raised from later victims until eventually no more money can be raised and the fraud collapses. Apparently, Mr. Madoff duped investors with detailed brokerage account statements and “audited” financial statements of Madoff Securities filed with the SEC. However, it appears these account statements were an essential part of the scheme and the firm auditing the books was also involved in the fraud. Wealthy individuals, businesses and charitable organizations, as well as some of Wall Street’s most sophisticated money managers, entrusted billions of dollars to Mr. Madoff’s firm based on these reports, his reputation and the roughly 10% return that he promised. At this point, it remains unclear how long Mr. Madoff was running this scheme, with some reports indicating that it may have lasted for years or even decades, and it is also unclear how much money was ultimately lost. One thing that is already certain from Mr. Madoff’s arrest is that the fallout has just begun. Currently, all of the assets of Madoff’s firm have been frozen and a receiver has been appointed to manage the firm’s financial affairs.
The attorneys at Crosby & Higgins LLP have a successful history of prosecuting claims on behalf of victims of Ponzi schemes, including the successful resolution of an action on behalf of two victims of an alleged Ponzi scheme arising out of $25 million dollar “debenture program” run by the business and holiday card company, V.W. Eimicke Associates Inc., and Ponzi scheme losses sustained in Ashbury Capital Management run by convicted swindler Mark Yagalla. Although there are likely to be a number of obstacles for the victims of Mr. Madoff’s Ponzi scheme, Crosby and Higgins LLP is using this experience to investigate which types of claims these investors possess and which claims are likely to see a recovery, as well as determining what can be done to protect the investors who are likely to be named as defendants by receivers seeking to recover assets for the bankruptcy estate. Crosby and Higgins LLP’s investigation is ongoing and it welcomes inquiries by investors who have sustained a possible loss in connection with Mr. Madoff’s firm. If you have any questions or would like to discuss a potential claim with one of our attorneys, please feel free to contact us directly at 646-452-2300.
"Passionate, persistent, professional and persuasive - only a handful of the words that begin to capture and reflect the high-quality advice and tenacious advocacy Todd Higgins and his team bring to every matter they embrace, large or small, complex or straight-forward"
- Shawn K. Singh, JD
Chief Executive Officer and Director, VistaGen Therapeutics, Inc.