If you watch television, read the newspaper, or surf news sites, you’re sure to have hears about the $50 billion Ponzi scheme masterminded by Bernard Madoff.
The $50 billion in losses is merely an estimate. Some experts (like me) think that the actual losses will be much higher.
Stockbroker Fraud Blog discusses several options victims have for recovery:
- Securities Industry Protection Corporation (SIPC) could provide up to $500,000 per account. (Although I think the customers of the “investment advisory” business which is allegedly where the Ponzi scheme occurred won’t qualify. Only regular brokerage accounts would qualify. And fraud doesn’t qualify either, only unauthorized trading or theft. It will be interesting to see how this one pans out.)