When a Ponzi
scheme breaks, the government rushes to forfeit the assets that constitute or
are derived from proceeds traceable to the crime. At the same time, creditors,
thinking that they had properly secured their claims, try to grab those very
same assets for themselves.
A recent decision out of...
The quest of defrauded investors in Ponzi schemes to be
made whole is ongoing. To recover their funds in the resulting bankruptcy and
receivership cases of the Ponzi debtor, investors file proofs of claim to seek
reimbursement of their unpaid principal investments and the promised but unpaid