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Investors scammed by Madoff can't recover money from fake profits

Bernard L. Madoff

Bernard L. Madoff Photo Credit: Getty Images

The owners of the Mets and other investors swindled by Wall Street scam artist Bernard Madoff have no right to recover money made from fake profits, a federal appeals court in Manhattan ruled Tuesday.

It’s a significant setback in their battle with trustee Irving Picard, who’s argued that certain clients, such as the Wilpon family, can’t collect bogus bucks they thought they had made in Madoff’s $65 billion con.

“We hope that the [Second Circuit] court’s decision can be the final word on this issue,” trustee spokeswoman Amanda Remus said in a statement.

A spokesman for the Wilpons did not immediately comment.

Picard, who was appointed to track down the money and assets lost to Madoff, has sued the Wilpons to recover $300 million in false profits and is also attempting to recover about $700 million in principal that the Wilpons originally invested. Picard argues that they should have known he was running a scam.

Madoff, meanwhile, is serving a 150-year federal prison sentence in North Carolina.

(with Newsday)

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