• Inside Labour

    Without radical policy change SA's social fabric will continue to fray, says Terry Bell.

  • Long live your gadget

    Real gadget protection tends to cost real money, writes Arthur Goldstuck.

  • Taking SA for a ride

    The ANC seems to think all South Africans are idiots, says Mzwandile Jacks.

Data provided by iNet BFA
Loading...
See More

$2.48bn payout for Madoff victims

Sep 20 2012 16:25 Reuters

Related Articles

US police arrest Madoff's brother

Sarb warns of ponzi schemes

Madoff: Banks had to know of fraud

No joy for many Madoff victims

Madoff has contempt for victims

Major pyramid scheme exposed

 
New York - Victims of Bernard Madoff's fraud will soon receive $2.48bn to help cover their losses, more than tripling their total recovery to about $3.63bn, the trustee liquidating the imprisoned swindler's firm said.

Cheques ranging from $1 784 to $526.9m were mailed on Wednesday to 1 230 former customers of Bernard L Madoff Investment Securities, according to trustee Irving Picard. The average payout is $2.02m.

Madoff's victims earlier recovered $1.15bn, including sums committed by the Securities Investor Protection Corp, which helps customers of failed brokerages.

US Bankruptcy Judge Burton Lifland in Manhattan authorised the latest distribution last month following two legal victories for the trustee.

In June, the US Supreme Court let stand a lower court decision that endorsed Picard's methods for calculating losses. In July, a former Madoff customer dropped a court challenge to a $7.2bn forfeiture by the estate of Madoff investor Jeffry Picower. Of that sum, $5bn would go to the Madoff firm's estate, and the rest to the US government.

Picard has recovered $9.15bn, or 53% of the $17.3bn he believes was lost in Madoff's Ponzi scheme.

The trustee is holding some funds in reserve as some Madoff victims pursue their own cases to recover more money.

Picard said this litigation is delaying further distributions. The trustee is also appealing court decisions that have limited his claims against banks such as JPMorgan Chase & Co that did business with Madoff.

A spokesperson for Picard was not immediately available to comment on the latest distribution.

The market for trading claims on potential recoveries from Madoff's estate will adjust for the distribution, according to Joseph Sarachek, managing director of claims trading at CRT Capital Group a Stamford, Connecticut-based broker-dealer.

He said claims that recently traded at around 69 cents on the dollar will likely soon trade in the 30s. "The Madoff market is fairly volatile," Sarachek said. "The real question is when people think the next distribution will be."

Lifland has authorised Picard and his law firm, Baker & Hostetler, to bill $321.2m of legal fees to pursue Madoff cases for the period ended January 31, 2012.

Madoff was arrested in December 2008 and pleaded guilty three months later. The 74-year-old is serving a 150-year sentence in a North Carolina federal prison.

* Follow Fin24 on TwitterFacebookGoogle+ and Pinterest.  



bernard madoff  |  fraud  |  ponzi scheme
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...