25 Million Dollars Invested in an Easily Avoided Scam

Nice Performance

Nice work for FPA. May be all SCAMERS will think's more to cheating all investor if FPA work like this.:nerd:
 
FPA will have to keep their eyes and ears open and work. There are brokers who are still making frauds after getting warnings from FPA.
 
the cre capitol scam

If anyone has any info on people involved in this scam. Please respond and I will pass it on to an investigator
 
New IRS ruling regarding Ponzi Schemes

Indirect investors can benefit from Ponzi scheme safe harbor.

A letter sent by the IRS to some members of the House of Representatives explains how indirect investors can benefit from a previously issued optional safe harbor which direct investors who suffered losses in Ponzi schemes can use to determine the proper time and amount of the loss. The letter indicates that the primary reason for the safe harbor's restriction to direct investors is because they are the party from which the perpetrator of the fraudulent arrangement stole money or property, and thus the proper party to compute and claim a theft-loss deduction. The letter stresses, however, that this restriction does not prevent indirect investors from benefitting from the safe harbor treatment or from deducting their share of a theft loss sustained by a passthrough entity. It notes that partnerships and LLCs taxed as partnerships that qualify as direct investors may use the safe harbor treatment and pass the loss through to the indirect investor (partner).

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Madoff Victims: What Will They Get Back? - Econwatch - CBS News

July 24, 2009 11:30 AM
Madoff Victims: What Will They Get Back?
Posted by CBSNews.com

By Marlys Harris of MoneyWatch.com.

Past victims of Ponzi schemes have historically recovered only pennies on the dollar, if anything. Often, bankruptcy trustees and other officials moved so sluggishly to recover stolen funds that the miscreant and his family had plenty of time to stash their gains offshore.

To determine to what degree he and other officials keep faith with investors, I have taken it as my mission in the coming months (and years) to follow the efforts to recoup the money. You'll be able to read all about it here and in my blog, The Consumer Reporter.

Some investors — but not all — can count on help from IRS refunds and from the Securities Investor Protection Corporation (SIPC), an industry organization whose mandate is to restore funds to customers of bankrupt brokerage firms.

But "indirects" — investors whose money found its way to Madoff's firm through hedge funds, banks, pension funds, and brokerages — cannot qualify for such help from Picard. Their only resort is to file a lawsuit against the entity that sent them to Madoff, its accountants and insurance companies; so far, investors have launched 130 suits.

(Some) Tax Relief on the Way

The IRS, one of the most loathed government agencies, was first to ease the victims' pain. Under its rules, investors are entitled to declare a theft loss and deduct the amount of their investment, including income they've reported in past years, even if it was fictitious.

They must subtract from the loss any amount they expect to recover and exclude any insurance payments they receive.

IRA investors will not be allowed to take the deduction because they have not paid taxes on the principal or the earnings.

Despite those limitations, says Richard S. Lehman, a tax lawyer in Boca Raton, Fla., who has several Madoff victims as clients, it's not a bad deal. "If you were in the top bracket when you paid your taxes on the profits and maybe you paid 5 percent in state taxes, you would get back 40 percent," he explained.

Excess losses can be carried back five years (three years for indirect investors) or carried forward as much as 20 years.

Many of the victims, however, won't be able to use all their losses to offset future income because they will have lower incomes and thus lower tax rates. Elderly Madoff investors may die before they can use it.

SIPC to the (Partial) Rescue

Only days after the Madoff fraud came to light in December, the SIPC won court permission to extend its protections to the company's investors. The SIPC provides up to $500,000 per account. Investors can qualify for expedited payment if they meet a hardship standard: They are unable to pay for necessities such as housing, food, utilities, and transportation; can't pay for necessary medical expenses; must return to work at age 65 or older after having previously retired; or have to declare bankruptcy. The process takes about 40 days, but investors who put money in before 1996 will have to wait until the trustee unscrambles their account records.

The SIPC safety net has gaping holes through which many investors are falling, however.

Only the people who had accounts with Madoff's firm — about 4,600 — are eligible to collect. People who came to Madoff through feeder funds are not covered. A giant feeder fund with one account at Madoff's firm might be able to claim the maximum $500,000, but it would have to divide that among all its customers. (The trustee is suing to keep some feeder funds from collecting SIPC money, alleging that they were privy to the fraud.) Another problem: The SIPC insures each account, not each investor. Extended families or groups, such as medical practices that pooled their savings in one account totaling millions of dollars, still cannot collect more than $500,000.

Article has been 'edited' (shortened). Use above link to read the entie article.
 
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Io credo che queste cose succedono per l'avidità di tante persone......se non c'era gente avida, forse la truffa avrebbe fruttato di meno.....!!!!!
 
Scams play to greed, so if there were fewer greedy people, there would be less scam. There would also be less money made in the world, both by scammers and by legitimate business enterprises. :)
 
Scams play to greed, so if there were fewer greedy people, there would be less scam. There would also be less money made in the world, both by scammers and by legitimate business enterprises. :)

i sense that'd probably be a world better off too.
 
I think a rational amount of greed is a good thing. If everyone sat down and said, "I have enough and have no need for more" the world would stagnate. Uncontrolled greed is what leads to unethical and illegal conduct.
 
I think a rational amount of greed is a good thing. If everyone sat down and said, "I have enough and have no need for more" the world would stagnate. Uncontrolled greed is what leads to unethical and illegal conduct.

People do say "I have enough and have no need for more" It's just some people's "enough" is a lot more than others ;)
 
As soon as I get my solid gold pyramid (twice the size of that so-called "Great Pyramid") done, I'll be able to say "I have enough and have no need for more." :p
 
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