It seems like every time you turn around there is a new story about the Wilpon’s and the fallout from their dealing with Madoff.
First we have hearing about how the trustee calculated amounts due from the Wilpons.
Then we have an apparent interest in having the Wilpon’s be owners of an MLS team in the New York market.
And finally we get reports that the trustee is now seeking to recover funds from some charitable foundations established by the Wilpons. Those recoveries are based on the same premises as the other clawback suits which allege that the foundations benefited by taking out more funds than they invested.
The mediation has been relatively quiet so it will be interesting to see whether they are just being used as a high profile example, or whether Picard is really going to take these suits the distance to try to recover more funds for the defrauded investors.
While you would have to applaud the recovery of funds it seems to continue to set a dangerous precedent of making investors responsible for the operational issues involved with any investment that they make.
