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
