The Ethical (And Mathematical) Dilemma Of Madoff Investors Who Took Some Money Out
from the what-to-do? dept
SIPC acts like an FDIC for these types of investments, helping to protect investors in cases of fraud. But some are realizing that if they took money out from Madoff over the years (and some did so profitably), if they go ask for money from the SIPC, it could alert regulators to the fact that they profited from Madoff's scam -- and they could suddenly owe the "profits" they had taken out in the past. The Feds can demand that those who profited from Madoff's scam return the money -- but that will involve actually being able to track them down. For some "victims," it may be better to just keep what they have, keep quiet, and forget what they thought they still had invested with Madoff. But there are concerns for others who have already admitted to cashing out (sometimes a long time ago), are they suddenly going to be forced to return the money they took out of their accounts?