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-- -- just because bringing -- -- will be sent today possible 115.
Years in prison.
Doesn't necessarily make your pension and safer over the past couple months other Ponzi -- is had been uncovered.
Costing Americans as much as 44 million dollars -- all of other cases.
Joining me now on how to protect your nest -- is -- often she's managing director of business intelligence and investigation with poll.
And she also happens to be former federal prosecutor -- federal criminal defense attorney also joining me as well from the Wall Street Journal as reporter.
-- -- good morning guys that you.
You know you look at -- sunny and people say.
What he's cool and hung his country -- there's only Ponzi schemes and why would only here in about -- well there always.
They've always been around they've been around for ever really the bottom line is -- to borrow from Warren Buffett but when the tide goes -- -- see -- swimming naked and that's really what's happening the economic crisis in the collapse.
Really coolest sort of all these Ponzi schemes to come to life but they've always been happening they've always been there prosecutors have been prosecuting them for years -- -- OK so if they'd been there.
Why do you think you know that people feel that the SEC -- particularly in this situation they had seven opportunities to do something about it and they never -- Is this a classic example of at war only regulators falling down.
And I hate to say it but I do think that the SEC dropped the ball I think a lot of prosecutors dropped the ball on this but they are very difficult to prosecute and they're difficult to uncover.
With the crisis it was much easier to -- because the way Ponzi schemes work Alexis is the money from the new investors -- It isn't really used to pay off the old investors when you don't have any more money coming in and you have investors trying to pull the money -- that's when it collapses and so certainly BS EC dropped the ball but they are difficult -- -- -- you know Jane I'm looking at the numbers here right of -- apparently was a sixty -- billion dollars scheme that they and now we're saying maybe thirteen to seventeen really.
But we got the fear filled counting counting their bill losing forty million stayed in Massachusetts losing twelve million and -- Curious Iron -- family members who are not wealthy people who have lost so much money how to protect themselves against us.
Well the biggest.
Certainly those investors right now is that to -- except that they had any money left in the pension plan a 401K.
Any sort of IR -- -- and -- -- ready for that matter.
Those assets are really protected from creditors.
So the issue here is they've lost a lot of money.
But for what's left what's remaining the biggest fear among them and is that the trustees for for bringing -- -- is going to go.
Back after -- to try to get them to return the money.
-- -- we always withdrew and redemption that they would have returned that to the other investors -- have these sort of tax exempt.
Assets those are generally well protected from creditors other priests say and.
And the hard part about this -- is that there are a lot of people who.
In gas stayed in things like their retirement funds -- their pension specifically here's two examples in Massachusetts and Connecticut.
But even need to know they were investing in this or think it's a feeder funds and they have no protection.
Right so in that case he can do if there is sentenced indirect.
Affect that and those investors have less protection and fortunately.
Then they do for the who might not be eligible for any payments from the securities analyst securities industry protection corporation sit back.
Which advanced -- -- 500000 purple for your losses.
So in that case if you have -- directly with Madoff.
You may be eligible to get paid back some of the some of your losses if you've done through feeder for however your chances on -- out of luck.
Any -- explain how this is gonna work because I was talking about this early to some attorneys.
I know this is so complicated because here's the claw back part of it there's the feeder funds -- the pension funds there's.
So many different variations of different investments -- how -- this -- take.
It could take years and years and years I mean we know that the Ponzi scheme Bernie's scheme was going on for many many many years it's gonna take at least half of that time.
To really unravel this and find out what really happened try to get people.
Back their money I think that we're gonna see litigation Alexis at least for the next ten years I really believe that.
How likely is it going -- ten years Jeff you know -- a lot of people are going to look at the decision made on Friday to give with Madoff.
Two and a half million dollars of cash and other securities are different investments.
And knowing that she's giving up apparently seventy -- 89 and -- in effect.
I didn't hit it wasn't there might be kind enough is getting -- I have to think he -- about that I was outraged I was -- shocked when I heard that she was getting two and a half million dollars a lot of money that's.
At least the money that it's several investors lost each invested someone's life savings and I'm not certain why that happened but my guess is that the prosecutors reached an agreement with her.
And a lot of that money was in her name I think upwards to eighty million dollars and so.
I think the agreement is you give up the 78 we get to keep to.
But I think everyone's going to be pretty outraged about that change before we wrap up here I was talking to two of the victims who -- had -- the show earlier and I said to -- people want frustration coming channel -- Is that the portrayal -- that the people who invested with this man -- all wealthy people.
And they were not and how do we -- -- war.
It everybody learned the lesson that at this because that is the perception whether we like it or not that everybody was a multi -- they would not they were not there are a lot of -- -- just regular folks people who are now pretty much destitute.
Having -- hardship programs the biggest lesson really is if it sounds too good to be true.
It probably is and if your advisor or -- the companies are willing to explain how this investment works.
Then I would run away and all that says that that those are clear red flags of any sort of that Ponzi scheme.
Apple we're gonna continue to talk about Anita Cochran a little roundtable discussion I just wonder what instant the feeder fund business as well -- to speed.
Not even as a result -- -- -- is funny think you guys.
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