Victims of Bernard Madoff and accused Ponzi schemer R. Allen Stanford are banding together to lobby Congress for a law that could require Wall Street firms to pay billions of dollars to cover some of the losses they suffered.
And by “losses” they mean the money they would have earned if Madoff hadn’t been a crook.
Harbeck declined to comment on the victims’ lobbying. “Speaking only for myself, I cannot see where it would be good policy to change the law to pay fictional, contrived investment profits in a Ponzi scheme,” Harbeck said.
Some of the Madoff victims in Chaitman’s group are separately involved in legal cases against SIPC. They lost one round on March 1 in federal bankruptcy court in New York when the judge agreed with SIPC that it shouldn’t base payments on fictional account statements. They are appealing.