BUSINESS BRIEFING / COURTS
Times Wire Reports
Some elderly investors have sued the trustee overseeing the liquidation of Bernard Madoff’s assets, saying the system being used to pay claims against the disgraced financier is unfair.
The lawsuit filed in U.S. Bankruptcy Court in Manhattan said six longtime investors wiped out by the scandal together lost life savings of $9 million -- the amount on fictitious statements issued by Madoff’s defunct firm in 2008.
It challenges rules that could disqualify the plaintiffs from collecting as much as $500,000 in government-backed compensation because over the years they withdrew more money -- believing it was profit -- than they originally invested.
