While investors who directly placed their money with Madoff qualify for federal financial protection and IRS benefits, hundreds of Coloradans who were indirect investors — sinking large sums in hedge funds that in turn sent money to a Madoff-affiliated fund — do not. Instead of rejoicing over Madoff’s sentence, they are still vexed about how to make their bank accounts whole again. They are placing their hopes with Congress to expand protection beyond direct investors.They may have gained some political traction in recent days. U.S. Rep. Ed Perlmutter’s office is working to change IRS provisions to help indirect investors write off their losses.Coloradans from all walks of life (many are Aspen locals) were swindled by Madoff — artists, teachers, farmers, doctors, politicians.
By Barb Hudson, June 30, 2009 Denver Post

Link to article.