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Some Investors Object To $7.2 Billion Madoff Deal

Bernie Madoff

Bernie Madoff (credit: Stephen Chernin/Getty Images)

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NEW YORK (AP) – Investors in jailed financier Bernard Madoff’s fraudulent investment business who have been denied payouts from recovered funds are saying they think the trustee recovering money for investors might be cheating them.

A lawyer for the investors filed papers in federal bankruptcy court in Manhattan Thursday objecting to a settlement that will provide $7.2 billion to Madoff investors who lost their original investment.

The objecting investors include those who earned more than their original investment and others who are not entitled to recovered money because they invested indirectly in Madoff’s funds.

They argue that the large size of the deal worked out by the trustee won’t leave any money behind for anyone else suing the estate of a Florida philanthropist who was the biggest beneficiary of Madoff’s fraud.

(Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)