NEW YORK-The Court of Appeals ruled on Thursday that although Bernard Madoff’s massive Ponzi scheme did nothing, they still did not know that they had to repay its profits, but these investors still profited from it.
The Second U.S. Circuit Court of Appeals in Manhattan upheld the lower court ruling filed by Irving Picard, the designated trustee of the court, who had recovered money for defrauded investors for more than ten years.
Madoff, 82, will be sentenced to 150 years in prison after pleading guilty to federal charges in 2009.
He was released early this year on the grounds of dying. Thousands of investors lost billions of dollars through his decades of fraud.
Madoff’s clients invested millions of dollars more than the original investment. They fought to retain profits in court. They argued through lawyers that they had received the payment in good faith and spent too much time for Picard to recover the money.
However, a panel of three judges from the Second Circuit concluded that investors are not entitled to “virtual” profits, which are actually money belonging to other customers.
It pointed out that investors are allowed to keep their investment principal.
Picard reported that it recovered more than $1