Proactive Madoff Victims May Recoup Losses Through Insurance

Tangled web of statutory limitations, competing coverage policies means plaintiffs must act quickly

Washington, D.C. – Still reeling from the aftermath of Bernie Madoff's $50 billion Ponzi scheme, victims are determining next steps in trying to recover lost investments, as defendants are considering claims against third parties and other defense strategies. One very important and potentially complicated option is identifying, preserving and maximizing the insurance assets of defendants and third parties to pay burgeoning defense costs and to fund eventual settlements or other liabilities.

"The misconception out there is that there's no real recourse through insurance claims," said Scott Gilbert, a name partner at Gilbert Oshinsky, who has settled high-profile insurance cases and won multimillion dollar settlements for clients.