Securities Law Blog

Over a year ago Attorney Javier Cremades helped organize 60 law firms from 25 countries outside of the United States, to represent investors from Europe, Latin America and Israel defrauded by the Bernard Madoff Ponzi scheme. On May 25, 2010, the founder of the Madrid law firm Cremades & Calvo-Sotelo announced to the press that over the past year, 720,000 of the investors represented by the firms have settled with their banks.

The $15.5 billion in settlements has helped repay 100 percent of the amount the clients had invested but typically did not include the phony paper gains that were listed on investor statements. Many of the settlements also included provisions that require clients to keep their money at the bank for several years. The estimated 20 banks are reportedly located in France, Spain, Portugal and Germany.

The majority of settlements came from commercial European banks and other global institutions through which investor funds were channeled into the multi-billion dollar Madoff Ponzi scheme. Unlike the majority of United States victims, who invested through money managers, midsize accounting firms and independent investment advisors, whose pockets don’t run as deep.