Bloomberg News

Madoff Trustee to Begin Distributions to Victims Tomorrow

October 04, 2011

(Updates with trustee’s comment in third paragraph.)

Oct. 4 (Bloomberg) -- The trustee liquidating Bernard Madoff’s firm said he’ll start distributing money tomorrow, starting with $312 million to go to victims of the fraud who have approved claims.

The trustee, Irving Picard, said today in a statement that he’ll begin paying the money to the holders of 1,230 Madoff accounts, reimbursing 4.6 percent of the money they lost in Madoff’s Ponzi scheme.

“This initial distribution is the first return of stolen funds to Madoff’s defrauded customers,” Picard said in the statement. “Significant, additional funds -- currently unavailable for distribution due primarily to appeals -- will ultimately be returned to their rightful owners, as well as future monies yet to be recovered. The need among many Madoff customers is urgent, and we are working to expedite these distributions.”

Picard has filed more than 1,000 suits against banks, feeder funds, former Madoff investors and others he claims profited from the fraud. Picard said he has recovered about $8.7 billion, or about half the $17.3 billion in principal he claims was lost.

The main case is Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, 08-ap-1789, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--Editors: Michael Hytha, Peter Blumberg

To contact the reporter on this story: Bob Van Voris in Manhattan federal court rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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