January 13, 2009

DILLON TARGETS MADOFF AND OTHER FRAUDULENT MONEY MANAGERS
Madoff case shows inequities in state law

Representative Pat Dillon (D-New Haven) has filed legislation that would allow the state to immediately seize the assets of anyone arrested for securities fraud. Under current state law, someone arrested for soliciting a prostitute in a vehicle can lose their car; someone selling drugs out of their home can have their home seized; but a financial advisor, who defrauds clients out of hundreds-of-millions-of-dollars, does not have to worry about the immediate seizure of assets.

"This strikes me as blatant class bias," Rep. Dillon said. "White-collar criminals should not receive preferential treatment. We seize the car of a John, but Bernie Madoff can stay in his penthouse apartment living off the savings of his victims? My legislation will address this inequity and give the victims of securities fraud hope for restitution."

Rep. Dillon authored the legislation after hearing stories of the many Connecticut victims of Bernard Madoff, the New York money manager who confessed to running a $50 billion Ponzi scheme.

Rep. Dillon said, "Madoff stole millions from Connecticut investors who are left in to climb out of his financial crater. Immediately seizing the assets of crooked money managers makes it more likely, if one of the victims sues, that there will be some money left to satisfy a judgment."