Victims Of Bernie Madoff’s Ponzi Scheme Could Get Another Few Billion Back Soon

It’s a tough job, but someone’s gotta do it: Irving Picard, the trustee in charge of liquidating Bernie Madoff’s assets is asking a New York court if he can distribute another $1.5 billion to $2.4 billion to victims of Madoff’s Ponzi scheme. He says he’s probably recovered around $9.1 billion but thus far, has only been able to hand out $1.1 billion of that.

Picard is in charge of trying to get as much money as possible for victims of Madoff’s fraudulent investments, and it has been quite the uphill task, notes the Associated Press. Since the scheme fell apart over three years ago, victims have been filing lawsuits and making complaints as to how the trustee has distributed the money.

Picard calls the requests for more distribution of funds “another major milestone in the worldwide Madoff recovery effort.”

So why has more money suddenly become available for distribution? Last month the Supreme Court declined to hear objections of victims who said they should be able to get back more than what they had lost, whereas Picard had argued they should only receive enough money to cover their losses.

Picard calls that decision “great news” for investors waiting to get their money back.

Then there was a settlement with the estate of a businessman who’d made money from Madoff’s fund — an extra $5 billion that ended up in the victims’ fund, sweetening the pot nicely.

There’s still a long way to go, including complaints from victims who think Picard needs to factor inflation and interest in when determining the value of their investments. He disagrees, and his chief counsel said in a statement that more money could be released to victims if they would drop such objections.

Previously in Madoff news: A Bunch Of Bernie Madoff’s Ponzi Scheme Victims Will Get $405 Million In Settlement 

Madoff trustee wants victims to get more money [Associated Press]

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  1. Mark says:

    I am not sure if I should feel sorry; all I hear is that rich people want to become filthy rich and didn’t care how it was done. Am I wrong in not feeling sorry for the “victims.”

  2. mstrmike says:

    Why would you expect to get more than you put in. You bet on a sure thing in a rigged Ponzi investment scheme promising incredible returns. The very fact that you are getting your initial investment back puts you ahead of folks who did really rash things like retirement accounts or buying homes. How much are they paying their lawyers to try and get more from this dry well knowing that anything they recover now is money that Madoff duped someone else out of? This is the kind of 1% thinking that makes some people glad when the really rich get it right in the ol’ meritocracy.

    • Carlos Spicy Weiner says:

      Two words…Shameless Greed :-(. They (the ones thinking they deserve more than they lost at the expense of everyone else) and Bernie are of the same ilk, as they say.

  3. suezahn says:

    Gee, if only those in charge were this thorough and determined to restore money to all those less wealthy who lost money due to Wall Street shannanagans. Just more evidence that the only way you see punishment–and justice–is if you’re wealthy.