Coalition for the Equitable Treatment of
Victims of Massive Financial Theft
In the last few years, investors have been defrauded of billions of dollars in Ponzi schemes. Among the most widely reported are those involving Bernard Madoff, Scott Rothstein and George Theodule, a South Florida businessman who preyed upon Haitian-American investors. While certain investors were wealthy, many others were not. These victims now find themselves with little or no retirement nest eggs despite lifetimes of working hard, saving wisely and investing conservatively. They now face an uncertain future. Many have been forced to liquidate assets, sell real estate, move in with their children, and even return to work in the midst of an economic recession.
These victims desperately need additional tax relief.
The Coalition for the Equitable Treatment of Victims of Massive Financial Theft is a 501(c)(4) organization whose purpose is to advocate for the passage of legislation to provide needed tax relief to individuals harmed by Ponzi schemes and enable them to recoup at least a portion of the taxes they erroneously paid on "fictitiously" reported income and their lost invested capital.
Whether you, your family, or your friends were victims of a Ponzi scheme, we need your assistance to make the case to Congress.
The Problem:
Individuals who invested in these now exposed Ponzi schemes paid taxes each year on income that was falsely reported to them. While the reported income we now know never existed, victims paid taxes as if it did. Current law provides some relief to fraud victims by allowing them to carry theft losses back to offset other taxable income for three or five years (depending on the taxpayer), and forward for twenty years. Unfortunately, this does not provide sufficient relief to victims who had been invested in these Ponzi schemes for many years. In particular, elderly victims who are retired and living off of savings will not have significant income to report going forward and thus will only be able to recoup a small portion of their taxes paid and their losses.
The Solution: HR 1159
Rep. Kendrick Meek (D.-FL) has introduced HR 1159. The bill would provide essential additional tax relief to Ponzi scheme victims by extending their theft loss carryback period to ten years. By allowing victims to carryback their Madoff losses to offset income reported on tax returns up to ten years ago, the bill will allow many victims to recoup a significantly greater amount of taxes paid on previously-reported income, as well as a portion of their lost invested capital. The bill would also provide tax relief for charities affected by Madoff and other Ponzi schemes by allowing individuals to replenish gifts to the affected charities.
The Team
Ed Glazer, President
Ed is a partner at the law firm, Goodwin Procter LLP, in the firms Business Law Department and is a member of its REITs, Real Estate Investment Management and Tax Practices.
Jon Talisman, Partner, Capitol Tax Partners
Jon is a founder of Capitol Tax Partners, Washington's largest independent tax policy consulting firm. Jon and the other members of the firm have extensive experience in representing clients on tax legislative and regulatory matters before Congress, Treasury and the IRS. Jon was Assistant Secretary of the Treasury for Tax Policy in the Clinton Administration, was Democratic Chief Tax Counsel for the Senate Finance Committee, and served as Legislation Counsel of the Joint Committee on Taxation.
Eric Gould, Partner, Thurman Gould
Eric represents Fortune 500 companies, non-profit organizations, multi-national corporations and municipalities in their dealings with the Federal government. He served at the White House as Associate Director for Domestic Policy in the Clinton Administration and on Capitol Hill as Counsel to Representatives Sander Levin (D-MI) and Karen Thurman (D-FL).
Josh Kram, Foxhall Strategies
Josh manages political, communications, and public affairs campaigns. He previously served as Director of Jewish Outreach for Hillary Clintons presidential campaign and Virginia Jewish Vote Director for Obama for America, and has consulted for groups ranging from the Council on Foreign Relations to Hillel International.
For more information about our efforts or to get involved with legislative and grassroots mobilization, please contact Josh Kram at jkram_foxhallstrategies.com.
ABOUT THE COALITION
The Coalition for the Equitable Treatment of Victims of Massive Financial Theft is a 501(c)(4) organization that was formed to seek essential tax relief for victims of Ponzi schemes. Aided by a team of advisors, the coalition has been working with Congress, Treasury and the IRS to seek this relief. The coalition was formed by a group of victims around the country who had invested with Bernard Madoff Investment Securities.
Join the Campaign!
We are organizing and mobilizing victims and friends of victims in this effort. Please
contact the coalition so we can keep you informed on legislative developments and let you know how
you can help. All of your information will be kept strictly confidential.
Services
Contact us.
Email: Contact_ponzitaxrelief.com
Victims of Ponzi schemes have the opportunity to extend the net operating loss carryback to ten years, but ONLY IF Congress knows of our concerns. Please take a few minutes to contact your members of Congress and voice your support for HR 1159 - Providing Tax Relief for Individuals Harmed by Ponzi Schemes.
Contacting Your Representative and Senators
1. Indentify your U.S. member of Congress and two U.S Senators. Click on the link and type in your zip
code to determine your U.S. Representative and to send the member an e-mail:
https://writerep.house.gov/writerep/welcome.shtml
If you dont know your zip + 4, go to http://zip4.usps.com/zip4/welcome.jsp
2. Identify your two U.S. Senators:
http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state&Sort=ASC
3. Call the Congressional switchboard ((202) 224-3121) and ask to speak to your House Member and
Senators.
Resources - Talking Points and Sample Letters
congressional tps
Download Talking Points on HR 1159
mocs letter instructions and samples
Download Sample Letter to Congress on HR 1159
1159
Download HR 1159
Prominent Trader Accused of Defrauding Clients
December 12, 2008
By DIANA B. HENRIQUES and ZACHERY KOUWE
On Wall Street, his name is legendary. With money he had made as a lifeguard on the beaches of Long Island, he built a trading powerhouse that had prospered for more than four decades. At age 70, he had become an influential spokesman for the traders who are the hidden gears of the marketplace.
But on Thursday morning, this consummate trader, Bernard L. Madoff, was arrested at his Manhattan home by federal agents who accused him of running a multibillion-dollar fraud scheme perhaps the largest in Wall Streets history.
