Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by Law.com, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!

X

Madoff victims’ payout may exceed $5 billion

Trustee hopes to distribute another $505 million

The trustee managing the payout to Bernard Madoff’s defrauded former customers hopes to have good news for the lot soon.

Irving Picard will ask for court approval to distribute another $505 million to Madoff’s victims—bringing the total amount of distribution to more than $5 billion. While the payout seems large, it’s only a fraction of the estimated $17.3 billion that was lost as a result of Madoff’s Ponzi scheme.

Picard posted on his website yesterday that he plans to ask a bankruptcy court for permission to distribute the funds. If granted, victims will have received $5.44 billion in recoveries, which is almost half of the $11.05 billion Picard has deemed allowed. Picard is withholding a portion of the funds for litigation and management purposes.

According to Thomson Reuters, Picard said he and his lawyers "are well aware of the need to return recovered funds as quickly as possible to those from whom the funds were stolen. They are constantly assessing all relevant issues to determine when it will be possible to make another pro rata interim distribution."

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. He is now serving a 150-year prison sentence.

Read more InsideCounsel stories about the Madoff scandal:

9th Circuit says Madoff investors can’t sue SEC

Peter Madoff gets 10 years behind bars

Madoff victims can only file claims for actual losses

Madoff trustee tries to block investor settlement

Former Madoff employee pleads guilty to decades of fraud

Madoff victims receive largest payout yet

Madoff trustee can pay victims $2.4 billion

Madoff trustee asks for $2.4 billion for victims

New York Mets settle with Madoff victims for $162 million

JPMorgan Chase faces $19 billion lawsuit from Madoff victims

 

Editor

Cathleen Flahardy

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.