Convicted con artist Bernie Madoff, whose name has become a byword for swindler, actually made an investment that's paid off -- and it's all real.
Madoff invested $2.2 million in a biotechnology company called Stemline Therapeutics
(NASDAQ:STML), which went public on Tuesday in the first biotech IPO this year, according to the New York Post
With the company selling shares at $10 each, Madoff's $2.2 million investment was turned into $5.5 million.
Of course, most of Madoff's other "investments" turned out to be a sham. Madoff is thought to have masterminded the biggest US financial fraud ever, convincing his clients that he was generating steady returns through his investing acumen. In reality, he admitted in court, when clients wanted to cash out, he paid them with money that belonged to other clients.
Madoff is serving a 150-year sentence in a federal prison.
The investment in Stemline Therapeutics may provide some relief to his victims, the Post
A court-appointed trustee, Irving Picard, has filed a lawsuit against a Madoff family fund seeking to grab the winning investment on behalf of the victims. Madoff's son Andrew is the "interim manager" of Madoff Family LLC, according to Stemline's prospectus. The Madoffs own 515,203 shares of the company, or about 6.9% of its post-IPO shares, the regulatory statement notes.
Picard's suit states that the Stemline shares rightfully belong to Madoff's former clients.
Stemline develops treatments for cancer tumors and cancer stem cells, but has yet to bring in revenue from its operations, according to its prospectus.
Editor's Note: This story by Aimee Picchi was originally published on MSN moneyNOW.
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