Madoff trustee wins ruling on returning losses

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The trustee liquidating Bernard Madoff's former firm has won an appeals court ruling backing his method of working out which investors can recover money lost in the Ponzi scheme.

New York's federal appeals court ruled yesterday that trustee Irving Picard can calculate losses using the so-called "net investment" method, according to Bloomberg. The method subtracts the amount withdrawn from an investor's account from the total placed with Madoff (pictured). A group of Madoff victims had urged the court to require Picard to use their final account statements, reflecting fictitious profits on money Madoff never invested, to determine losses. Today's ruling limits the number of victims who can claim money from the fund Picard oversees and reduces the amount of m...

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