Irving Picard, the trustee for fraudster Bernie Madoff’s former clients, has won the right to distribute funds to some of Madoff’s victims.
Yesterday, U.S. Bankruptcy Judge Burton Lifland, approved Picard’s request last month to distribute $2.4 billion to some of the conman’s victims. To date, Picard has already distributed $1.1 billion to victims of Madoff.
In December 2008, Madoff was arrested for securities fraud after he masterminded one of the largest and longest running Ponzi schemes in U.S. history. In the end, Madoff cheated his clients out of between $18 billion and $20 billion, according to David Sheehan, chief counsel to Picard. Madoff pled guilty to the charges in 2009 and is currently serving a 150-year sentence.
Much of the money recovered from Madoff’s scheme has been placed in reserves, as litigation over its distribution plays out. Some of the fraudster’s victims believe they may be owed more than others.
Read more about this ongoing case on Thomson Reuters.
For more InsideCounsel coverage of the Madoff fiasco, see: