The Securities Investor Protection Corporation (SIPC) announced today that Bernie Madoff’s victims will receive almost $2.5 billion in funds as part of a second round of distributions from trustee Irving Picard. The latest round of distributions brings the amount recovered in allowable customer claims to approximately 50%.
Combined with the funds returned in a first round of distributions, customers have recovered more than $3.6 billion out of the approximately $17.3 billion in principal they lost as part of Madoff’s long-running Ponzi scheme.
Thus far, the SIPC has advanced more than $800 million to Madoff customers, and has provided a further $621 million to fund the trustee’s administrative costs. No recovered customer funds have gone to pay for the liquidation proceedings.
Nearly 1,110 accounts were included in the latest distribution, receiving an average of $2 million, according to the trustee's office. Between the SIPC advance and two rounds of distributions, 1,074 accounts have been fully reimbursed, leaving 1,048 investors who are still waiting on remaining funds.
In all, the trustee’s office has recovered, or reached agreements to recover, almost $9.15 billion, although much of that total is being held in reserve pending the outcome of litigation. According to the trustee’s press release, 229 additional claims may become eligible for future distributions depending on the result of related lawsuits.
"While this progress is extremely gratifying, we will not cease our work to continue recovering assets for the Customer Fund, and we will make additional distributions as soon as practicable" Picard said in a statement.