It appears as though one great fraud deserves another. A group of Madoff victims is taking a page out of Bernie's book and asking a federal bankruptcy judge to reconsider the way their losses are being calculated. Their magic formula is one part backward logic, one part betting that a judicial system that awarded damages to somebody who lost their psychic powers can get taken to the cleaners one more time.
The customers say that, by law, they should be given credit for the full value of the securities shown on the last account statements they received before Mr. Madoff's arrest in mid-December, even though they were bogus and none of the trades were ever made. According to court filings, those account balances add up to more than $64 billion.
Papa Ponzi would be proud.
Victims of Madoff Seek Claims Overhaul [NYT]