Firms say clients that invested in Bernard L. Madoff Investment Securities, which allegedly defrauded investors of $50 billion, are worried about the possibility of clawback cases, which are extremely common in bankruptcies following Ponzi schemes. Investors targeted for clawbacks may have varying avenues of recourse, depending on which state they live in and whether they have assets besides their primary residence.
Madoff Investors May Be on the Hook for 'Clawback' Suits
The National Law Journal
January 6, 2009