Proceeds of Crime Act:
"The Proceeds of Crime Act allows for the confiscation of assets that have been obtained through criminal activity. But, the act also provides for the confiscation of money and assets even if they have been acquired through legitimate means, if it can be shown that they are indirectly derived from criminal activity."
....
from www (university law school..)
"When a Ponzi scheme collapses, there will typically be net winners and net
losers. The bankruptcy trustee will often seek to force the net winners-
those who received more money back from the Ponzi scheme than they
invested-to disgorge their profits."
...
"The power of the bankruptcy trustee to claw back the debtor's prepeti-
tion transfers via avoidance actions is an important part of the framework of
creditor protection built into the Bankruptcy Code. In the context of bank-
rupt Ponzi schemes, the avoidance action is equally important, if not more
important, than it is in nonfraudulent bankruptcies. For example, the trustee
in the Madoff bankruptcy has filed roughly a thousand lawsuits, many of
which contain avoidance claims, in an attempt to recover billions of dollars
for the estate. Although this Note ultimately concludes that, with two key
exceptions, the Code does not permit the trustee to claw back earnings from
net winners, this Section sets forth the basic transfer avoidance framework
and concludes that a bankruptcy trustee will almost always have a prima
facie avoidance claim against those who receive transfers from a Ponzi
scheme."
"The Proceeds of Crime Act allows for the confiscation of assets that have been obtained through criminal activity. But, the act also provides for the confiscation of money and assets even if they have been acquired through legitimate means, if it can be shown that they are indirectly derived from criminal activity."
....
from www (university law school..)
"When a Ponzi scheme collapses, there will typically be net winners and net
losers. The bankruptcy trustee will often seek to force the net winners-
those who received more money back from the Ponzi scheme than they
invested-to disgorge their profits."
...
"The power of the bankruptcy trustee to claw back the debtor's prepeti-
tion transfers via avoidance actions is an important part of the framework of
creditor protection built into the Bankruptcy Code. In the context of bank-
rupt Ponzi schemes, the avoidance action is equally important, if not more
important, than it is in nonfraudulent bankruptcies. For example, the trustee
in the Madoff bankruptcy has filed roughly a thousand lawsuits, many of
which contain avoidance claims, in an attempt to recover billions of dollars
for the estate. Although this Note ultimately concludes that, with two key
exceptions, the Code does not permit the trustee to claw back earnings from
net winners, this Section sets forth the basic transfer avoidance framework
and concludes that a bankruptcy trustee will almost always have a prima
facie avoidance claim against those who receive transfers from a Ponzi
scheme."
Muni loves you all!
1
1
than Canada... Far bigger teeth down south !
Making the best out of pips
