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Madoff Victims Sound Off On New Scam

Thousands of Bernard Madoff's victims are learning they've been in the cross-hairs of yet another billion dollar scam. A spokesman for the Securities Investor Protection Corporation (SIPC) says a fraudulent foreign website has announced the discovery of $1.3 billion dollars the Ponzi King supposedly stashed inside a Malaysian hideout.

The problem: there is no cash. And Madoff victims were encouraged to divulge private financial information to file meaningless claims.

"Here it is another scam," said Madoff victim Judith Welling." People feel that if you've been scammed once, that you're 'scammable.' I don't know if that word exists but that you're scammable. "

The phony website, which has been abruptly taken down by its authors, asks Madoff investors to fill out useless claim forms and submit brokerage statements and other personal information. The web site claims to represent the International Securities Investor Protection Corporation, a fictitious organization posing as the US Securities Investor Protection Corporation, or SIPC. Despite a logo which looks strikingly similar to the official SIPC logo, the web page is riddled with grammatical and spelling errors.

On the site's menu bar, a link promises to explain what an investor's claim covers and "what it dose {sic} not." On the right side of the page the fraudsters write "ISIPC advices {sic} claimants to check their names on the refund scheme list." The inept scam artists even failed to take the page down properly. If you try to visit the now defunct page a message reads, "the site is temporally {sic} closed."

"I think this is kind of black comedy," said Welling.

Welling and her husband DeWitt Baker lost more than $1 million in retirement savings to Bernard Madoff's multi-billion dollar scheme. They say they've been getting emails from scammers posing as legitimate financial companies and regulatory agencies for months now. The former publishers say they're not taking the bait.

"They think they're going to get away with it but it's impossible," said Baker. "The old line is there's a sucker born every minute and that's what they're looking for. "

Aside from a blatant attempt at identity theft, architects of the fraudulent web page had the audacity to include a plea for donations to re-build Haiti.

The real SIPC issued a statement condemning the foreign fakers.

"SIPC wants to be as clear as possible," said agency President Stephen Harbeck. " Madoff victims and other investors should not share any personal financial information via this web site or rely upon it as an information source. We intend to use every available means to shut down this illicit operation. "

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