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FOX News Contributor Mercedes Colwin discusses whether Madoff Trustee Irving Picard’s pay is justified.
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You know I was shocked to learn yesterday how much money -- -- -- on the lawyer recovering money from beta for Madoff victims is being -- Business.
This stressed he has already gathered over three.
Billion dollars.
For the victims for which he's been paid a hundred million -- these old Paul -- minute.
But I think the -- is the -- state yes he's a loyal guests all all phone yes he's being paid a hundred million dollars.
Did you get the shock in my voice that -- you should have a hundred million dollars as a shock to me.
Joining us now is Fox News legal analyst Mercedes Colwin Mercedes I am shocked and frankly outraged.
That's a lawyer should be getting a hundred million dollars of money that would have gone to Madoff victims how do you see it.
I mean unfortunately that's what the law is -- mean that's he's operating bylaw and they get a percentage of the recover its extreme it's an enormous.
But there's an incentive for for -- to be successful so on the downside it's two point nine billion dollars to the victims it's 100 million to him.
But how OK there's a conflict of interest here though isn't -- He suppose well produced justice.
But he has an incentive to go out and get as much money in as possible -- -- his feet will go off that.
Is a profound conflict of interest isn't.
Well welcome to the legal system I mean that's how the legal system is and believe me there's a lot of movement has been for decades since I've been a lawyer that -- that they have gone -- it.
There -- contingency but you want to give lawyers' contingency fees.
We want to pay for the services they've rendered on an hourly fee base is much more fare much more predictable and you don't have these types of and of -- things that come up.
But across the board -- unfortunately happens along all the time.
Would you be in favor of eliminating contingency fees lawyering -- I am and I mean I'm -- the English -- that's slightly different.
But would -- be in favor of getting rid of contingency fee lawyer.
As the defense attorney absolutely I get paid hourly by the services -- provide but.
There are a lot of this is why the plaintiffs' bar is so enormous and so strong they're folks that can't afford an -- feed attorneys they just can't I mean.
And the average fee for an attorney 350 dollars an hour they're folks at -- they can't do with and that's what they -- contingency fee arrangement and that's why there's a lot more -- and get lowers.
-- -- -- zero back in again on on the that the Madoff case let's suppose that I had placed money would Bernie Madoff in the eighties and the nineties and not made money and -- you know not big chunk of money.
And then at the end of the nineties I think -- I don't wanna be insult to bonds and longer I wanna get into real estate so -- take my money out of Madoff.
-- but that's what I didn't take it out sure ten years later along comes eleven pick on and says wait a minute.
You can't do that I want all of that money back because you were a Madoff invest.
We won't back money and by the -- I will get a piece of the money that I take all review that used to be in Madoff.
That's Mercedes is not justice.
Well that's what it's at at before the judge right now I mean there the clash of the titans here made there's always been a theory that Madoff had favorite investors in those favored investors may have included.
The Mets owners and those of individuals that they -- investors that got a huge amount of profit.
Now the Mets owners invested 300 million their profits -- about 83 million.
And that's a Picard wants you want the whole kit -- -- But -- rate copilot I've litigated before countless times has said.
You're not going to get close to 400 million dollars in recovery what you might get it is that 83 million dollars.
It's okay now -- I see some justice that.
Because you're taking away the profits which were nonexistent in the first place taking what the 83 million dollars in profit -- I got that -- -- I think -- do at least.
How do things is gonna wrap up.
While judges really as -- said -- been performed many many times he's easy straight shooter right out of the box.
There's a lot that that's a pretty compelling you've invested 300 million dollars how is it that you didn't know that there are some illegal activity going on.
Presumably.
As investor of that magnitude you have the due diligence they certainly have the resources they have their lawyers they're cameras following up on the profit.
At some point you the investor who was so knowledgeable and has such a full breadth of support funny you have to -- known.
That -- -- had some illegal activity you're getting 1450%.
Recovery when the national average is about three to 5%.
That that's what the judge have to decide and he's he's he's not even letting the judge the jury decide he's court decided upon himself when he wrote -- indecision.
I think ultimately he's he'll split the baby and he will give a recovered -- work.
-- -- Picard Imus say it is thanks very much for joining us we really appreciate -- being with us today on the you're out there and finished you go up in the middle of the night for all of this I do appreciate that thanks so much and.
Great starting my day with these aren't they -- All right thanks was that is we.
