NEW YORK, Dec. 15, 2008 (GLOBE NEWSWIRE) -- The investment world was shocked when Bernard Madoff, a Wall Street icon for decades, was arrested and charged with running a $50 billion "Ponzi scheme," a term he himself reportedly used to describe his empire.
As authorities and regulators scratch their heads as to how this eluded them, investors are searching for relief. "There are a number of possible recovery options for investors," says William Shepherd, founder of Shepherd, Smith, Edwards & Kantas LLP (sseklaw.com), a law firm which has represented thousands of investors nationwide over the past two decades. "Many Madoff investors have contacted our firm and we are currently reviewing at least four or five sources of recovery for them," Shepherd adds.
The Securities Industry Protection Corporation (SIPC) could be a source of recovery. SIPC guarantees are limited to $500,000 per account and legal action against SIPC is often necessary to recover claims. Furthermore, SIPC has limited reserves and would not be able to cover billions in losses without a government infusion.
In addition to the possible recovery of funds from the individuals and entities which comprised the Madoff financial empire, potential recovery exists from various third party participants. Furthermore, those who placed the funds of others into accounts with Madoff may have liability. "Our firm has also helped numerous investors seeking to qualify for income tax refunds far beyond the limitations on capital loss treatment," says Shepherd, adding that "we are also investigating other sources of recovery or relief for these investors."
Shepherd's law firm is not charging Madoff investors to review each of their possible claims and plans to, if advisable, offer to pursue their cases with legal fees based only upon a percentage of actual recovery.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, we have represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented over 1,000 investors during the last 18 years in negotiation, mediation, arbitration and litigation.