The deadline for filing a claim with the Madoff Victim Fund is February 28, 2014. The U.S. Justice Department has established a new fund that will provide compensation to a much broader class of victims of the Madoff fraud. Indirect investors or those who invested with Madoff through a feeder fund or other intermediary, are now eligible to file claims for compensation with the Madoff Victim Fund. (Meanwhile, the Madoff bankruptcy proceeding is restricted to direct investors only.) Claims will be calculated on a cash-in/cash-out methodology similar to what is used in the Madoff bankruptcy proceeding, and claims will only be allowed for a victim’s net loss (not loss of any “fictitious gains” reported by Madoff). For example, if an investor originally invested $2 million in a Madoff feeder fund, then took distributions totaling $700,000, that investor’s net loss would be $1,300,000 – even if the feeder fund account statements showed a higher balance prior to December 2008. The burden of proving the amount of the loss falls upon the claimant. Please note that the deadline for filing a claim with the Madoff Victim Fund is February 28, 2014. For more information, claimants are encouraged to contact their legal counsel or visit the Justice Department website for the fund, www.madoffvictimfund.com. Image courtesy of FreeDigitalPhotos.net

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