Thursday, October 22, 2015
Madoff Bankruptcy Trustee Recovers Substantial Amounts For Fraud Victims
According to a filing in federal bankruptcy court in New York this week, many of the victims of the 2008 investment fraud carried out by Bernie Madoff will recover most or all of their losses. Among the victims were a number of Jewish philanthropic organizations. The Jewish Press reported yesterday that court-appointed bankruptcy trustee Irving Picard has recovered, or reached agreements to recover, some $10.9 billion on behalf of victims of the Ponzi scheme. If the court approves the latest distribution proposed by Picard, victims who invested up to $1.61 million with Madoff (1264 out of 2227 victims) will get all of their funds returned. Those who invested more will receive back 57% of their investment. A number of the Jewish charitable foundations who were victimized each had well over $1.61 million invested. (See prior posting.) The Wall Street Journal reports that this latest payout has been delayed as litigation over how to calculate the losses of some investors has wound its way through the courts.