NEW YORK (Reuters) - the President of capital markets House Subcommittee called for a full probe in the question of whether the liquidation of Bernard Madoff investment company fairly treats victims of Ponzi scheme and costs too much.
Scott Garrett (R - n l.j.) and three other officials called the Government Accountability Office to review the work of Irving Picard, the trustee appointed to the Court, search for money for the former in Bernard l. Madoff Investment Securities LLC investors.
Garrett, who chairs the Subcommittee on Financial Services House on the markets of the capital and Government-Sponsored enterprises, wants an examination if Picard and his law firm Baker & Hostetler are overcharging for their work on the ""method of net capital"of the trustee to distribute the funds."
A Federal Court of appeal of New York should rule on the question of the distribution.
Garrett has also asked the GAO to examine the role of the Securities and Exchange Commission in the process and the monitoring of the Securities Investor Protection Corp. fraud of Madoff's $ 65 billion was discovered on December 11, 2008.
A thorough probe is necessary "given the current situation where many defrauded investors have still not received any compensation from the ISDR and/or have the threat of prosecution by the trustee suspended above their heads", Garrett has written to the Comptroller General Gene Dodaro in GAO's Office.
Other members of Congress by signing the letter are Rep. Peter King (R - n .including.), ABR. Carolyn McCarthy (D - n .INCLUDING.) and Rep. Ileana Ros-Lehtinen (r - fl). Many victims of the Madoff lived in the area of the city of New York or Florida.
Amanda Remus, a spokesman for Picard, refused to comment on. The SEC John Nester spokesman refused comment. The ISDR does not immediately return a call seeking comment.
Picard said he has recovered more than 7.6 billion dollars for the former clients of Madoff, but that all but $ 272 million is attached in a dispute.
Some customers think that they must recover the amounts on their final account statements, even if these amounts were made. The trustee believes that some of these clients are in fact "net winners", which means that to withdraw most of their accounts that they invested and should abandon taxed.
Through March, Hostetler & Baker, representing Picard in his capacity as trustee, was paid $ 148.9 million to cover the fees and expenses, while Picard was paid $ 3.6 million.
In March, Chairman of the SEC Mary Schapiro said that it regretted that former General Counsel David Becker has participated in the work of the Agency on Madoff, because he received a legacy that included the Madoff funds. Becker is now in private practice.
(Statement by Jonathan Stempel in New York and Sarah n. Lynch in New York, editing by Matthew Lewis)
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