DOJ recovers nearly $4.3 billion for Madoff Ponzi victims, completing final distribution to over 40,000 affected investors.
The U.S. Department of Justice (DOJ) has almost fully recovered the money lost by investors in the largest Ponzi scheme in history. The DOJ said that nearly 41,000 victims of Bernard L. Madoff’s fraud have chipped in for $4.3 billion. The Madoff Victim Fund (MVF) has issued its 10th and final distribution.
More than 23,000 victims worldwide will receive the last distribution, which amounts to more than $131 million. To date, nearly 94% of the 40,000+ victim losses documented in the suit were provided. Most of these victims were small investors, receiving back less than $500,000.
DOJ Madoff Recovery Program Returns Almost All Stolen Funds
Over a decade ago, the MVF started its work. The cash provided to victims came from money that the U.S. government obtained after Madoff’s criminal Ponzi scheme. Much of the money came from the estate of Madoff investor Jeffry Picower and a deferred prosecution agreement with JPMorgan Chase. However, the final distribution, announced today by the DOJ, recovers almost all of the stolen money. As a result, it brought the total return to victims to more than $4.3 billion.
On the other hand, Brent S. Wible, head of the DOJ’s Criminal Division, called the program a success. Under the complicated process, he said, victims will get their money back. In addition, the department poured its resources into recovering almost every cent of a stolen fortune, as expressed by Edward Y. Kim, Acting U.S. Attorney for the Southern District of New York.
In 2009, Bernard L. Madoff pleaded guilty to 11 felonies in connection with the world’s largest Ponzi scheme, and was sentenced to 150 years in prison. Even after being convicted, his recovery process took much longer.
Ultimately, these payments are overseen by the MVF led by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission. With the hard work of the DOJ, the FBI, and many other agencies, the thousands of victims are now getting the money stolen from them.
