Ex Madoff Clients Have to Pay Other Investors Too

What? Oh yes, you read it right. Even had you been smart enough or lucky enough to get out, as far back as years and years ago, you are still going to have to cough up to pay the other shareholders off. It's a little known law known as fraudulent conveyance, which concerns the illegal transfer of property with the intent to commit fraud. It's complicated but fraudulent conveyance is being used in other fraud cases. When this gets out in the public you can bet the stock market will get slaughtered. The Journal has the story. However this additional story in Forbes indicates that the person withdrawing funds without any thought of the Ponzi that was going on may be off the hook.