Charities Consider Selling Madoff Claims

from The Wall Street Journal:

Betting on Madoff Recovery Claims

Just as Wall Street traders place wagers on almost any company or event, some investors are approaching victims of Mr. Madoff’s Ponzi scheme, offering to buy them out at a discount for their claims to what is eventually recovered by Irving Picard, a court appointed trustee who is gathering assets for Madoff victims.

… ASM [ASM Capital, based in Woodbury, N.Y.] is offering either to make an immediate payment of 20% of claims in exchange for the full claim; or make an upfront payment of 16% of the claims, with the investor keeping 33% of future recoveries.