Bernie Madoff Ponzi Victims in Line for Another $247M in Restitution

Nearly 7-1/2 years after Bernard Madoff’s Ponzi scheme was unmasked, the court-appointed trustee recouping money for the swindler’s victims on Thursday sought court approval to free up another $247 million to help cover their losses.

The proposed payout would be the seventh by the trustee Irving Picard, and follows several recent settlements to recoup sums from other firms that once did business with Madoff.

Once the distribution is made, eligible recipients will have recouped about $9.45 billion, Picard said.

U.S. Bankruptcy Judge Stuart Bernstein is expected to review the payout at a June 15 hearing in Manhattan.

Picard noted that the proposed distribution would be the smallest so far, but in a statement said: “It is vital to move expeditiously to return stolen Madoff funds to the rightful owners. The victims have waited years for restitution.”

Madoff’s fraud was uncovered in December 2008. Now 78, Madoff pleaded guilty to fraud in March 2009 and is serving a 150-year prison term.

About $171 million of the latest payout would go to 972 former customers of Bernard L. Madoff Investment Securities LLC immediately, while about $76 million would be held back pending the outcome of other litigation.

Individual distributions would range from about $137 to about $28.7 million, the trustee said.

This would result in full payments on 1,289 of the 2,597 Madoff accounts with valid claims, including everyone owed $1.2 million or less, the trustee said.

Picard has recovered or reached agreements to recover roughly $11.13 billion, more than three-fifths of the $17.5 billion of principal he has said Madoff customers lost.

The sums administered by Picard are separate from a $4 billion U.S. Department of Justice fund overseen by former U.S. Securities and Exchange Commission Chairman Richard Breeden.

Last week, Breeden said he expects to recommend payouts to at least 25,280 claimants, including people who invested with Madoff through third parties. Breeden expects to submit formal recommendations by the end of August.—Reuters

Your Comments

The Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. All readers can browse the comments, and all Forward subscribers can add to the conversation. In the interest of maintaining a civil forum, The Forward requires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not and will be deleted. Egregious commenters or repeat offenders will be banned from commenting. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and the Forward reserves the right to remove comments for any reason.

Recommend this article

Bernie Madoff Ponzi Victims in Line for Another $247M in Restitution

Thank you!

This article has been sent!

Close