November 24, 2020

A decade after Madoff's arrest, victims continue to recover money

A decade after Madoff's arrest, victims continue to recover money



A decade after the arrest of investor Bernie Madoff, sentenced to 150 years in prison for committing the largest US pyramid scheme, his victims are still recovering money thanks to those responsible for the liquidation of his firm and the country's Justice.

The lawyers Irving Picard and David Sheehan, appointed by the authorities as administrators of the liquidation of the firm "Bernard L. Madoff Investment Securities", had recovered until last November 30 a total of 13.305 million dollars through agreements with those who benefited

This is stated on its website, The Madoff Recovery Initiative, where they indicate that the trust fund of the Securities Investor Protection Act has "recovered or reached agreements to recover" that figure, more than 75% of the 17,500 million lost by the customers who have filed complaints.

"This recovery far exceeds any previous restitution effort related to Ponzi schemes, both in terms of dollars and the percentage of stolen funds recovered," they say.

The trustees also detail the diverse origin of the funds, which range from investment firms such as Trotanoy (about 29 million) or Alpha Prime (almost 76.5 million) to the investor Jeffry Picower (5,000 million), now deceased, who as a consultant Madoff was one of the big receivers of the scam.

On the other hand, the US Department of Justice has a Victim Compensation Program that is part of the Madoff Victims Fund, which aims to return 4.050 million dollars and has already made three deliveries to victims.

The $ 695.4 million that Justice spent last November to compensate 27,000 victims spread across the world has become the largest payment in the history of the program, as highlighted by the Prosecutor's Office of the Southern District of New York.

Assistant Attorney General Brian A. Benczkowski said in a statement that the Madoff scam "devastated retirement plans and pension funds, nonprofit organizations and thousands of individual investors in 49 states and the District of Columbia – in the US. .–, and in 121 other countries. "

The Madoff Victims' Fund has already distributed more than half of its capital, some 2 billion dollars (56.65%), and was financed in large part by the assets seized from investor Jeffry Picower, who died in 2009 at 67 years

The funds corresponding to Picower represent 2,200 million, and another 1,700 million come from a deferred prosecution agreement with the JPMorgan Chase bank, of which the US investor was a client and which is considered not to have reviewed in detail the criminal activities of Madoff.

Richard Breeden, former president of the Securities and Exchange Commission of the United States and special manager of the government fund for victims of Madoff said on the official website that they are "giving back more dollars to people than ever" and expect thousands of people more recover your money.

"We hope that our effort is demonstrating that, as a society, we are not left without doing everything possible to fix the ravages of this crime against innocent investors," says Breeden, who has worked for the victims' financial recovery but also for "trusting in the rule of law. "

Madoff, who is now 80 years old, was arrested on December 11, 2008 and three months later admitted that he had turned his investment firm into the largest pyramid scheme in the world for his own benefit, that of his family and that of his circle. near.

According to the authorities, his fraud would have exceeded 65,000 million dollars, above the 50,000 that he had initially confessed. The judge sentenced him to 150 years in prison and to pay a fine of almost 171,000 million dollars, recalls the Prosecutor's Office.

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