Bernie Madoff and Claw Back

Since Bernie ‘Yikes, I’m Gonna Die in Jail’ Madoff made no investments, he couldn’t have lost any of those billions in bad investments. So, if they can use the threat of serious jail time on all involved, both investors who did profit and collaborators, with an exhaustive claw back and asset seizure process they ought to eventually get most everything back, except whatever Bernie and his evil cohorts spent on non-assets, which can’t be all that much. Nothing like $50 billion or even $15 billion. There are plenty of capable financial types out of work these days, so hire the horses to follow the money. Likewise with lawyers.

To me the claw back rule should be simple: If you took out less than what you put in, you get to keep it. Whatever you got above what you put in goes into the pool to be redistributed. Anything Madoff paid in fees to anyone goes into the pool, assets seized accordingly. Non-cooperative investors and collaborators right to the hoosegow. The threat of jail time for perjury used uncompromisingly.

An estimate of what should ultimately be recovered can be done, and then the government could provide partial early payments to victims, so someone who had their life savings with the crook(s) might not have to fire sale their house, etc.