Wall Street Speculators Seek To Profit from Madoff Victims' Losses

[sabra]

Source: ABC News

Offers of 30 Cents on the Dollar Tempt Investors Tired of Waiting To Get Their Money Back

For many of the victims of Bernard Madoff's Ponzi scheme, there is now a quick way to get some return on their lost investment.

More than 2,300 Madoff victims have had their claims to recover lost funds approved by a bankruptcy trustee, and now a handful of Wall Street bottom feeder firms are offering to buy those claims for 30 cents on the dollar. An investor who lost $100,000 would receive a check for $30,000.

The firms are betting that the Madoff investors, many of them old or infirm, are tired of waiting to get their money back – and that the firms could reap huge profits because lawsuits brought by the trustee against banks and others to recover Madoff funds will, in time, actually lead to a much more generous return.

"We have bought up tens of millions of dollars in Madoff claims from dozens of victims," said Adam Moskowitz, president of Woodbury, New York–based ASM Capital.

"Payments are made within one to three business days," reads an ASM Capital offering sent to the victims last week.

Read more: http://abcnews.go.com/Blotter/wall-street-speculators-seek-profit-madoff-victims-losses/story?id=12355706

[aquart]

1. And they already know Madoff investors are gullible.

[Hubert Flottz]

2. Just like vultures only worse.