The fund established to provide restitution to the victims of historic Ponzi schemer Bernie Madoff is starting its fifth distribution to harmed investors.
The U.S. Department of Justice (DoJ) announced that the Madoff Victim Fund has begun disbursing another US$378.5 million to victims of the scheme, bringing total victim payouts to more than US$2.7 billion.
“In this distribution, payments will be sent to over 26,000 victims across the globe, bringing their total recovery to 73.65%,” the DoJ said.
Eventually, it’s expected that more than US$4 billion will be returned to victims as compensation for losses they suffered from the collapse of Bernard L. Madoff Investment Securities LLC.
The funds that have been collected to return to investors include approximately US$2.2 billion recovered as part of the civil forfeiture from the estate of a deceased Madoff investor and US$1.7 billion collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A., along with other actions against another client, Madoff and his co-conspirators.
In 2009, Madoff pled guilty to 11 felonies, “admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefiting himself, his family and select members of his inner circle,” the DoJ said.
He was sentenced to 150 years in prison.
“This office continues its efforts to seek justice for victims of history’s largest Ponzi scheme,” said Geoffrey Berman, U.S. attorney for the Southern District of New York.