U.S. Attorney Announces Total Distributions Of Over $4 Billion To Victims Of Madoff Ponzi Scheme

 

Payments of Approximately $372 Million Are the Eighth Distribution in a Series of Payments That Together Will Constitute the Largest Payment of Forfeited Funds in the History of the Department of Justice’s Victim Compensation Program

 Damian Williams, the United States Attorney for the Southern District of New York, Attorney General Merrick Garland, and Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division, announced today that the Madoff Victim Fund established by the Department of Justice began its eighth distribution to victims of funds forfeited to the United States Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme.  The distribution will include approximately $372 million in additional funds, bringing the total distributed to date to over $4 billion.  The funds will be sent to 40,000 victims worldwide, the eighth payment to victims that will bring their total recovery from all sources of compensation to 88.35% of their losses.  The Madoff Victim Fund will ultimately return to victims more than $4 billion in assets that have been recovered as compensation for losses suffered by the collapse of BLMIS, following the largest fraud in history, announced by this Office in 2013.  Another $5 billion in assets recovered by the U.S. Attorney’s Office are being separately paid to Madoff victims through the BLMIS Customer Fund administered by the Securities Investor Protection Act Trustee.

U.S. Attorney Damian Williams said:  “This Office continues its historic work seeking justice for the victims of Madoff’s heinous crimes.  Today’s additional payments of $372 million by this Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represents the eighth in a series of distributions that will leave victims with compensation for more than 88 percent of their losses—a truly remarkable result.  But our work is not fully complete, and this Office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s crimes continues.”

Assistant Attorney General Kenneth A. Polite said:  “The Criminal Division is proud to continue providing compensation to victims through the largest remission process the Department has overseen.  The billions distributed worldwide is a testament to the Department’s sustained efforts to ensure justice for the victims of Bernard Madoff’s massive fraud.” 

Since the early 1970s, BERNARD L. MADOFF (“MADOFF”) used his position as Chairman of BLMIS, the investment advisory business he founded, to steal billions from his clients.  On March 12, 2009, MADOFF pled 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.  On June 29, 2009, United States District Judge Denny Chin sentenced MADOFF to 150 years in prison for running the largest fraudulent scheme in history.  Judge Chin ordered MADOFF to forfeit $170,799,000,000 as part of MADOFF’s sentence.   

The Madoff Victim Fund is funded through recoveries by the U.S. Attorney’s Office in various criminal and civil forfeiture actions and is overseen by Richard Breeden, the former Chairman of the United States Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.

Of the approximately $4.05 billion that will be made available to victims through the Madoff Victim Fund, approximately $2.2 billion was collected as part of the civil forfeiture recovery from the estate of deceased MADOFF investor Jeffry Picower.  An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. for MADOFF-related Bank Secrecy Act violations.  Additional funds were collected through criminal and civil forfeiture actions against MADOFF and his co-conspirators, and certain MADOFF investors.

Mr. Williams praised the work of the FBI and the Madoff Victim Fund and thanked the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division for their assistance.

For more information about the Madoff Victim Fund, compensation to victims of BLMIS, eligibility criteria, and payment information, please visit www.madoffvictimfund.com.