NEW YORK (1010 WINS/WCBS 880) – The Madoff Victim Fund began its ninth distribution of nearly $158 million in funds on Monday forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC fraud scheme, prosecutors announced.
"In 2009, when the Southern District of New York charged Bernie Madoff for his $64 billion securities fraud 'Ponzi' scheme, it was one of the most prolific financial crimes in American history," "U.S. Attorney Damian Williams said. "Among Madoff's many victims were not only wealthy and institutional investors, but charities and pension funds alike – some of which invested money with Madoff on behalf of individuals working paycheck-to-paycheck who were relying on their pension accounts for their retirements."
Madoff, the former chairman of his investment advisory business BLMIS was found guilty of stealing billions of dollars from his clients. In 2009, he admitted to committing 11 federal felonies, revealing that he had turned his wealth management business into the largest Ponzi scheme in the world and was sentenced to 150 years in prison.
To compensate the victims of his fraud, over $4 billion has been made available. Of this, approximately $2.2 billion was obtained from the estate of Jeffry Picower, a deceased investor in Madoff's scheme, as part of a significant civil forfeiture.
An additional $1.7 billion was taken from JPMorgan Chase Bank N.A.
The rest of the funds were acquired through legal actions against investor Carl Shapiro and his family, as well as through civil and criminal forfeitures from Madoff, his brother Peter B. Madoff, and their associates.
Payments will be sent to 24,875 victims. MVF has paid over $4.22 billion to 40,843 victims as compensation for losses they suffered from the collapse of BLMIS.
