The Department of Justice this week announced that on April 20, the Madoff Victim Fund (MVF) began its fifth distribution of approximately $378.5 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, officials stated.
This brings the total distributed to over $2.7 billion to nearly 38,000 victims worldwide, according to officials.
In this distribution, payments will be sent to over 26,000 victims across the globe, bringing their total recovery to 73.65 percent.
This distribution represents the fifth in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS.
The MVF has received over 65,000 petitions from victims in 136 countries.
“This office continues its efforts to seek justice for victims of history’s largest Ponzi scheme. Today’s additional payments of more than $378 million by this office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represents the fifth in an on-going series of distributions that will leave victims with compensation for more than 73 percent of their losses,” said U.S. Attorney Geoffrey S. Berman of the Southern District of New York. “But our work is not yet finished, and this extraordinary level of recovery represents this Office’s ongoing and tireless commitment to compensating the victims who suffered as a result of Madoff’s heinous crimes.”
For decades, Bernard L. Madoff used his position as Chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients.
On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle, officials stated.
On June 29, 2009, U.S. District Judge Denny Chin sentenced Madoff to serve 150 years in prison for running the largest fraudulent scheme in history.
Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower, according to authorities.
An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action.
The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.