Federal prosecutors said yesterday that a review of most accounts held by Bernard Madoff's customers when he was arrested shows that about half of the customers had not lost money because they withdrew more than they originally invested. That doesn't, however, take into account the loss of any money they thought they had made on that investment.
The government said a search of financial records show that investors suffered net losses exceeding $13 billion. Most of Madoff's 4,902 active customers have filed claims for restitution, but nearly 50% of those customers had had no net loss because they withdrew more funds than they contributed. Prosecutors told a judge in court papers that there was no need to order restitution because all of Madoff's assets will be distributed to investors through forfeiture requirements.