Final Payment to Bernie Madoff’s Victims Brings Recovery to Most

The long road to justice ends with Bernie Madoff’s victims reclaiming nearly 94% of their losses—15 years after the Ponzi scheme collapse. 🌐 #News #NewYorkNY #NewYork #Crime

NEW YORK, NY – Fifteen years after the collapse of Bernie Madoff’s Ponzi scheme, the final disbursement to victims has arrived, bringing their total recovery to nearly 94% of the losses. The U.S. Department of Justice announced in New York City that more than $131 million would be distributed to over 23,000 victims around the world. This marks the tenth and final payment in a long, complex journey to compensate those affected by one of the largest financial frauds in history.

The Madoff Victim Fund’s Last Distribution

In the final step of the recovery process, the Madoff Victim Fund (MVF) disbursed $131.4 million to victims, bringing the total amount distributed to more than $4.3 billion. Over 40,000 victims across 127 countries have received compensation, achieving a recovery rate of 93.71%.

“The Criminal Division, through its Money Laundering and Asset Recovery Section (MLARS), is proud to administer the department’s remission program to compensate victims using forfeited assets,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division.

“The unprecedented scope and complexity of the Madoff remission process shows the power of forfeiture to recover assets and to compensate victims — a primary goal of the department’s Asset Forfeiture Program.”

The Justice Department’s Role in Compensation

The recovery effort was primarily fueled by civil forfeitures from various sources, including the estate of deceased Madoff investor Jeffry Picower, who contributed approximately $2.2 billion.

JPMorgan Chase Bank also played a significant role, providing $1.7 billion as part of a deferred prosecution agreement and a parallel civil forfeiture action. Other funds came from Carl Shapiro, his family, and the Madoffs, who faced both civil and criminal forfeitures.

Acting U.S. Attorney Edward Y. Kim for the Southern District of New York emphasized the success of the program. “This office has never stopped at pursuing justice for victims of history’s largest Ponzi scheme,” Kim said.

“With this 10th and final distribution, we have succeeded in compensating 40,930 victims with close to 94% of their losses.”

How the Funds Were Collected and Distributed

The road to this final disbursement was long and complicated, but the U.S. Department of Justice continued to pursue asset recovery with determination. The funds used to compensate victims came from both criminal and civil forfeitures, including those from Madoff and his co-conspirators. This collective effort allowed the Justice Department to return billions to victims, most of whom were small investors who lost less than $500,000.

“These victims implicitly trusted Madoff with their investments only to ultimately lose significant monies to his selfish plan,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office.

“With the Justice Department’s steadfast support, the FBI will continue its tireless seizure of assets from criminals who steal from others and seek to recover those assets for victim losses.”

The End of the Fraud

With Madoff’s death in April 2021 and his 150-year sentence in 2009, the final distribution marks the end of a historic effort to compensate the victims of one of the largest financial frauds in history. This unprecedented recovery process, which took more than a decade, has returned billions of dollars to victims who were left with nothing but shattered trust.

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