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When all -- Madoff Bernie Madoff mess it when the dust settles.
Who is gonna wind up -- -- will they be more transparent -- to show for joining us now smartly picked called.
Former SEC enforcement attorney currently a partner with -- -- -- Marvin is great to see you thank you into thinking is you really you can't -- the government you can -- on the same buyout but even at one investors going after the SEC.
The feeder funds have been saved some advisors have been saved dispel I'll do is gonna get sued and all of those -- Well let's follow the investor to me that's a non starter a lawsuit.
Because the law is clear you cannot sue the US government aside from sovereign immunity you cannot sue them on the grounds that they didn't discharge.
The responsibility given to them what they -- that in negligent way congressman Abramoff but -- come over the coals put an individual can sue them.
With respect to the lawsuits and I just saw this payment of 2328.
Million dollars that's really invest this money.
Because it's coming from some place and it's coming from the pool of money that should be available to pay back.
Even if -- from his -- that may help the state when they say the main office -- -- and I'm assuming it's not coming out of his personal money it's coming out of the firm.
Which is money that might otherwise be there to pay investors but I think ultimately.
When we get past this -- feeding frenzy stage.
Investors and and rational people and and lawyers are gonna sit down and take a look at.
Who had what relationship with whom.
What would they specifically told what we're presentations were made because you have people who -- direct food made also -- organization of people -- -- Directly with their own advisors who -- things you have people who bill -- banks who dealt with feeder funds -- dealt with Madoff.
So there's a whole bunch of issues -- you have to get sorted out.
In some sort of a rational way Melissa -- one example of Eric Roth he's a famous an Oscar winning screenwriter wrote -- -- -- nominated for The Curious Case of Benjamin Button citi's advise our.
But can you -- advisor for putting all your money with just one farm.
The answer that as -- as a lawyer yes and no.
I mean at first blush it would seem that if you're advising somebody you probably should balance out where you put their money at risk.
On the other hand it depends on what their conversation was.
What he understood his advisor who's going to be doing and what -- and wives are understood.
Was going to be the investment a lot of beef was sold on the idea that.
This was a safe year over year -- 789%.
It wasn't somebody chasing 2530%.
Return so he advises may have thought that this was a good prudent place to put the money.
If you're -- high net worth investor is negligence harder to prove.
Is it harder to -- harder to make a case against say one of the feeder funds because it is the stick -- mean.
Could you can take on more risk because you're rich.
Well -- the law.
-- pretty clear that you can't cheat somebody disclose their rich.
And and the concept of a sophisticated investor.
Somebody who may have made a lot of money.
Owning a mining company.
Is not necessarily sophisticated when it comes to dealing with.
Credit default swaps and derivatives and other types of security so it really depends upon.
Well the person was what they understood what they were told the -- there were lying upon.
I think a lot of people political back and look at the documents those sent initially when -- first -- -- -- You think the fees that say some of these feeder funds were charging plays and all of this.
But duke is the question going to be raised -- these feeder funds making more money off of allocating money to Bernie Madoff and they would add that they put it somewhere else.
Is back and.
Iowa I think it will play a role it'll play a role as to what with a feeder funds getting not just in terms of their commissions put in terms of any other benefits that they were getting.
What choices where they making.
What information that they have or not have.
Did they bother to read documents my guess is if you read the disclosure documents with -- -- -- organization generated.
It's probably all the documents you read the securities here expect a list of risk factors and those people probably gonna wind up having to answer questions about.
Did you see this and did you see that and what is you don't.
What's that -- representing anybody at this point how many people just approach -- you and it's not just is it wealthy people who lost money in night -- we we have been approached by a various people both.
Wealthy individuals so -- names appeared in the papers and even some institutional investors like universities.
And right now I guess like the potential clients.
We're trying to figure out.
We ought to be representing and they're trying to figure out who they want to represent them I'm sure there's no end of lawyers out there that are begging people to hire them so I think.
That's probably the first step that someone's got to make -- who's the right lawyer for me and who was gonna have the experience and skill to do what I need done.
And the years and years -- this all shakes out well and then we're gonna have congress charming and we've also some new legislation while they start Chiming in on Monday so they're -- minimal start and -- it was great to save mart I can't -- -- -- more if and happy new year to you very well.
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