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Some feared that the money recovered from Bernard Madoff’s “fortune” would go to the U.S. Treasury, but today it was announced that those jilted investors would be getting the money.

The SEC along with federal prosecutors filed papers separately with a federal judge to ask for all the money and assets be liquidated and given to the investors.

Honestly, Madoff won’t need the money because he’s facing 150 years in prison for the huge ponzi scheme he ran for a quarter century. He pled guilty last month to the charges and is sitting in prison right now waiting to be sentenced in June.

The news is obviously welcomed by those investors who trusted Madoff with their money. Some of the investors were ready to file for bankruptcy.

The SEC first filed papers Wednesday to calm investors who fear they need to initiate bankruptcy proceedings to protect their money. It said bankruptcy would create unnecessary confusion and cause costly and potentially wasteful litigation.

Later in the day, prosecutors filed their own arguments, saying the action brought April 1 by a half dozen investors “is premised on a fundamental misunderstanding of forfeiture and bankruptcy law.”

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Jeremy

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