Fears That Madoff May Be 'Taken Out' By Fellow Inmates

Bloomberg reports that $65bn fraudster Bernie Madoff may need to look out for himself in prison. Bernie could be in danger from fellow inmates, as the majority of those banged up with him will be serving time for violent crimes.

The news agency quotes Steve Vincent, a former police officer who now runs Federal Prison Consultant Services, who said: 'If they (the inmates) see an opportunity to take that man out, and be in the paper and make a name for themselves, what have they got to lose ?'.

In the meantime, Reuters reports that US investigators have confirmed that 10 or more people associated with the fraudster could end up facing criminal charges as the heat is turned up by federal prosecutors, who are certain that Madoff would not have been able to get away with his Ponzi scheme for so long without help.

The news agency also reports that a total of $231m has already been committed by the Securities Investor Protection Corporation to compensate Madoff victims. The average payout is $425,414.

Finally, The Wall Street Journal reports that J.Ezra Merkin, the US financier who is being sued by New York Attorney General Andrew Cuomo over Madoff-related losses, has sold some $310m of artwork. Cuomo has successfully frozen Merkin's assets, and after taxes and loans against the artworks are paid, some $192m could eventually be paid out to investors. The net proceeds will be placed in an escrow account until after the litigation has concluded.