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Bloomberg headshot of Bernard Madoff

Regulation and Compliance > Litigation

Madoff Victims to Get $372M in New Payments

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Victims of Bernard Madoff’s massive Ponzi scheme will soon get another $372 million in payouts, bringing the total amount distributed from a government fund to more than $4 billion since the collapse of the fraudster’s company in 2008.

The eighth payment so far from the U.S. Justice Department’s Madoff Victim Fund will go out to about 40,000 victims worldwide, and will increase the total recovery from all sources of compensation to 88% of losses, the U.S. Attorney’s Office in Manhattan said Wednesday in a statement.

The money was raised through government settlements with Madoff’s bank, JPMorgan Chase & Co., as well as some of his oldest customers, such as investor Jeffry Picower, who died in 2009, according to the statement.

Madoff died last year in prison, where he was serving a 150-year prison term.

“This office continues its historic work seeking justice for the victims of Madoff’s heinous crimes,” U.S. Attorney for Manhattan Damian Williams said in the statement. “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.”

The U.S. fund is separate from the repayment process being overseen by a trustee, Irving Picard, in federal bankruptcy court in Manhattan.

His litigation against customers who profited from the scam has so far recovered more than $14.5 billion, most of which as already been returned to victims.

(Photo: Jin Lee/Bloomberg)

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