After years of waiting, many of Bernie Madoff’s Ponzi scheme victims are finally getting their money back.
After years of hoping and waiting, many of the victims of Bernie Madoff’s Ponzi scheme are finally getting their money back.
Stephen Harbeck, president and CEO of the Securities Investors Protections Corp., told ABC News that people who invested up to $1,161,000 will recover all of their cash, based on a new court motion. That reflects of the majority of investors duped by Madoff, and anyone who invested more than that could get at 61 cents on the dollar, provided they have an approved claim.
Once a well-respected financier, Madoff was arrested in late 2008 on charges of fraud, money laundering, perjury and theft. Authorities said Madoff falsely promised investors consistent returns by using money contributed by new investors.
In 2009, Madoff was sentenced to 150 years in prison for what is considered the largest private Ponzi scheme in U.S. history. The 77-year-old is serving time at a medium-security facility in North Carolina.
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U.S. officials have recovered $11 billion of the $17 billion believed to be lost when the pyramid scheme collapsed, leaving thousands of victims without any savings. The largest portion – $7.2 billion – came from Madoff’s alleged co-conspirator, Jeffrey Picower, who died in 2009, reportedly from a heart attack in his swimming pool.
This latest round of payouts will bring the total amount reimbursed to victims to $9 billion, said Irving Picard, the court-appointed banking trustee charged with recovering people’s losses. The trust hopes to recover another $3 billion to $4 billion to distribute to victims.
Checks for the latest distribution will start going out later this year.
Despite the huge payouts for victims, some have argued the $1 billion charged in legal fees is excessive and an abuse of the system. Others have disputed how the payouts are calculated, saying their recovered amount doesn’t reflect their true losses.
But attorneys have said the legal fees are reasonable given the complexity of the case. When the scandal first erupted, it seemed few victims would ever see their money again.
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