Recovery Fund for Victims of Madoff’s Ponzi Scheme Climbs to Almost $14 Billion

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Photo credits: Stephen Chernin/Getty Images



On Friday (February 28), a court-appointed trustee authorized the distribution of $369 million dollars to 854 accounts whose holders were victims of former investment advisor Bernard Madoff (pictured).

Irving Picard is the trustee liquidating Bernard L. Madoff Investment Securities LLC. At the behest of the courts, Picard’s fiduciary duty involves paying out money to parties who were victims of the incarcerated white-collar criminal’s Ponzi scheme. According to a report by Reuters, Picard has paid out a total of $13.9 billion dollars to eligible account holders so far. These payouts included funds from the Securities Investor Protection Corporation.

This latest payout brings completes an 80 percent recovery total for the $17.5 billion-dollar loss, which was tallied by federal prosecutors who worked Madoff’s criminal case. Prosecutors labeled Madoff’s criminal conspiracy and illicitly acquired enterprise as the biggest Ponzi scheme in U.S. history. Picard also said 1,469 of the 2,282 eligible accounts will be paid out following the authorization he made on Friday, Reuters reports.

The U.S. Department of Justice has also set aside a nearly $2.4 billion-dollar fund, which is designated for other special entities that were victimized by Madoff’s massive scheme to defraud investors. Pension funds, charities, and schools are some of the beneficiaries who will be paid by the U.S. Justice Department’s compensation fund. Madoff pleaded guilty in March 2009 and was sentenced to 150 years in federal prison.

Nowadays, the psychopathic swindler is using his deteriorating health as an excuse to be granted a presidential pardon. Madoff is presently being housed at the medical unit of a federal prison complex in the U.S. state of North Carolina. His prison sentence commutation request, which was given to the U.S. president, is currently under review.

However, a number of the everyday people who were victimized by Madoff never received the brand of mercy he is seeking today. Some of these people were not sophisticated investors. They were elderly citizens who trusted Madoff with their retirement plans. There are also Madoff victims who will only get a portion of what they lost from the court-appointed trustee who is responsible for allocating the recovery funds.

Years later, the U.S. government and the American public are still putting together a daunting financial puzzle that was ransacked by Madoff’s greed; all while he lays dying on a self-serving campaign for leniency. However, that is to be expected of a person like Madoff who has such a menacing grandiosity complex.

There is certainly no honor amongst thieves; even when they are on their deathbeds.