Advertisement

U.S. begins $4.05 billion Madoff fund payout, thousands to recoup losses

From Reuters - November 9, 2017

NEW YORK (Reuters) - The U.S. government said it has begun distributing $772.5 million from a $4.05 billion fund to compensate victims of Bernard Madoffs Ponzi scheme, ending a nearly nine-year wait for thousands of people to start recouping their losses.

A total of 24,631 checks from the Madoff Victim Fund are being mailed to individuals, government entities, schools, charities, and pension and retirement plans in 49 U.S. states, Washington, D.C., and 119 other countries.

More than two-thirds of the recipients, or 16,557, had received no prior compensation for their losses. They will receive about $545 million from the payout, which is structured to cover 25 percent of recipients losses.

Rod Rosenstein, the deputy U.S. attorney general, in a statement on Thursday called the payout, from the Department of Justices victim compensation program, the largest restoration of forfeited property in history.

Richard Breeden, a former U.S. Securities and Exchange Commission chairman, oversees the $4.05 billion fund, which was set up in November 2013. He declined to comment.

Madoff, 79, is serving a 150-year prison term for running what prosecutors called a $65 billion Ponzi scheme, which was uncovered in December 2008.

Advertisement

Continue reading at Reuters »