This will be amusing if it turns out to be true:
“I said at the very beginning when I met with the SEC and Picard that my hope is that everyone will receive their principal [which amounts to $20bn]. Back then, everyone laughed. But [Picard] has already recovered $10bn and he will cover $20bn easily. If he is successful, he may get $50bn. That means that there will be $30bn profits to go around, which would make me one of the greatest money managers in modern history.”
Just to explain the background here.
If you\’re an investor in a Ponzi scheme in the US (mebbe here as well, don\’t know), when the scheme is found out, as they all are in the end, you\’ve got to pay back everything you received from that scheme. Managing to get your capital out before the collapse, just as an example, doesn\’t free you from the scheme. And you have to pay back all the \”interest/profits\” that you received as well. The legal argument is along the lines of, well, you\’ve benefitted from the scam so you\’ve got to pay it back.
And don\’t forget, the Madoff scam went on for decades. So there were people who got decades worth of profits: those profits being paid out of the new money flowing in of course. So, what Picard is doing is making everyone (well, there are exceptions for those who are broke etc) pay back everything. Then he\’ll share it all out again.
And as Madiff himself says, there\’s a very real possibility that there will be a profit to distribute. Not as large as the one everyone thought they were earning, true (that 1% a month), but a profit all the same.