Now, compared to Tom Hicks’ current ordeal with the Rangers, the Mets’ situation doesn’t look all that bad. Except, there’s one biiig catch which suggests that this will all end in tears, which is briefly touched on at the end of the ESPN article above.
Picard, the liquidator appointed by the court, has filed lawsuits against some Madoff investors who profited from the Ponzi scheme, seeking to recover approximately $15 billion. The Mets Limited Partnership hasn’t been sued.
Bradley Simon, a former federal prosecutor who is not involved with the case, told Bloomberg that he expects Picard to try to recover the money from the Wilpons.
“It cannot be argued on Wilpon’s behalf that these were legitimate investment returns,” Simon told Bloomberg. “It would be a violation of his fiduciary duty for Picard to not seek the return of that money.”
Herein lies the rub. In previous ponzi schemes, trustees have gone after investors who withdrew their money previous to the fraud’s exposure, in an effort to even out the losses amongst all investors.…