Madoff victims pleased with sentence, wait for money - Fox29 WFLX TV, West Palm Beach, FL-news & weather

Madoff victims pleased with sentence, wait for money

By Chuck Weber email

BOCA RATON, FL (WFLX)-Local victims of Bernard Madoff, had their eyes on New York City Monday. Boca Raton attorney Guy Fronstin, who represents 67 Madoff victims, says clients he spoke with were pleased Madoff got the maximum sentence. Fronstin says it recognizes how investors were treated.

"The 150 year sentence justifies the victimization that they've gone through," says Fronstin. "They realize, 'You know there's a third party here that agrees with how cruel Mr. Madoff has been to us.'"

The bottom line is: How much of their money will the investors get back? And when?

Fronstin says the IRS has moved quickly amending victims' tax returns. But he says only a few of his clients have received a settlement from the stock brokers insurance fund called Securities Investor Protection Corporation, or SIPC.

"SIPC seems to be playing what I call the insurance game," said Fronstin. "There's a lot of delays. Delay, delay. Stall, stall." The maximum payout from SIPC is a half-million dollars.

Fronstin says several months ago, it looked like Madoff investors would only get one to two percent of their money back. Now it looks like the payout will be more like 15 percent, thanks to more Madoff assets recovered by the feds.

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