WHAT IS A CLAWBACK?

Video Transcription

In a Ponzi scheme, oftentimes, a receiver will be appointed to collect money on behalf of the injured victims. A clawback action gives the receiver the right to seek fake or false profits back from investors who received them in order to pay the investors as a whole. In the Bernie Madoff scheme, the receiver received 75 cents on a dollar through these types of clawback actions.