Victims of convicted Ponzi scheme fraudster Bernard Madoff will be receiving nearly $2.5 billion in checks that were mailed Wednesday, according to the Securities Investor Protection Corporation.
Bernard Madoff
The SIPC credited the hard work of Madoff liquidation trustee Irving H. Picard and his attorneys in reaching that major milestone.
Approximately $17.3 billion in principal is estimated to have been lost in the Ponzi scheme by direct customers of Bernard L. Madoff Investment Securities who filed claims. When combined with the funds already returned to BLMIS customers, the second interim distribution satisfies more than 50 percent of the total Madoff accounts with allowed claims. Nearly 1,100 accounts were covered by the second distribution.
The Madoff liquidation trustee's recovery of more than $9.147 billion has been made possible through advances provided by SIPC, which is funded by the securities industry. To date, SIPC has advanced over $800 million to pay customer claims and an additional $621 million to fund the liquidation proceeding. No monies recovered by the Trustee have been used to pay any administrative expenses. All recoveries made by the Trustee benefit customers.
"This shows that the customer protection program created by Congress works,” SIPC president Stephen Harbeck said in a statement. “Trustee Picard has been tireless in his efforts to recover monies and distribute them in a fair and equitable way to all customers with allowed claims at the failed BLMIS brokerage. In doing so, he has been able to satisfy more than half of the BLMIS accounts with allowed claims. We are pleased that SIPC has played an important role in making possible the recoveries. SIPC will continue to work with the Trustee to achieve the maximum recovery for customers.”
Madoff pleaded guilty in March 2009 to 11 felony counts of defrauding his investors of an estimated $65 billion. He was sentenced to 150 years in prison.
5 Comments
It is interesting to note that reporting on this clawback has been followed by many in accounting. What is also interesting is that it is the rich who are getting the attention, and the money back. When most Ponzi victims are not rich or famous, not much attention or money is paid. Nor are the Perps of Wall Street Banking spending any time in the Grey Bar Inn. No matter what the turtle-like SEC does when chasing those rabbits.
Posted by: nostromo49 | September 27, 2012 10:30 PM
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As far losses, if those were in an IRA forget it.....no reportable loss. You get to recover the lost by not having to pay a tax on the additional money. Hence the USA losses has a lost from that same income not being taxed. IE The BOX of money is a lot smaller now! It just changed hands.
Regular investment, first net losses against gains, then the max write off is (-$3,000/per year) carry forward any additional loss, if any. Most states follow this, but check with your TAXMAN!
And in closing, Why are you using a photo from his past, the Photo should be of him in DC uniform.
thj
Posted by: THJTAX | September 27, 2012 3:05 PM
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Is the losses the investors had considered a tax loss for income tax purposes?
Posted by: Kenneth C | September 27, 2012 1:13 PM
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sorry, last question should read, "Question, should these people be considered fraudsters?"
Posted by: tego@verizon.net | September 21, 2012 1:38 PM
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Not that great a percentage. Madoff and friends could not have spent all of that money. Seems that the early investors got large phony profits. When was it that claw-back went back to?
This proves that even successful people are both greedy and stupid. Of course many of the early investors/cash out people most probably suspected this was fraudulent, but figured on that the early cash out, prior to discovery of the fraud was worth the risk. Question, should these people be consisted fraudsters?
Posted by: tego@verizon.net | September 21, 2012 1:37 PM
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