Madoff Victims Receive Final Payout (Nearly 94 Percent Recovery)
According to reporting from the International Business Times, the final payments have been made to the victims of the record-breaking Madoff Ponzi scheme. With these payments—which come more than 15 years after the scheme fell apart—the victims have recovered approximately 94 percent of their losses. Here, our Miami Ponzi scheme lawyer provides a more detailed overview of the case, including the final payouts to the investment fraud victims.
An Overview of the Madoff Ponzi Scheme
Over the course of several decades, New York-based financier Bernie Madoff pulled off one of the largest financial fraud schemes in global history. It was initially uncovered in December of 2008. Astoundingly, the Ponzi scheme defrauded thousands of investors of nearly $65 billion. Mr. Madoff’s operation promised consistent, above-market returns through a strategy he falsely described as “split-strike conversion.” However, in reality, he used funds from new investors to pay returns to existing ones. It was a classic Ponzi scheme that created the mere illusion of profitability. The fallout was devastating, wiping out life savings, charities, and institutional investments. In 2009, Madoff pled guilty to 11 federal felonies and received a 150-year prison sentence.
Final Payouts Have Been Made to the Madoff Victims (15 Years Later)
More than fifteen years after Bernie Madoff’s Ponzi scheme was exposed, the last set of investment fraud victims have received a final payout from the Madoff Victim Fund. The Department of Justice (DOJ) announced the tenth and last distribution of $131.4 million. Payments were made to 23,000 victims. That fund has paid out more than $4.3 billion directly to Ponzi scheme victims. Notably, investors from more than 120 different countries have received payments. The DOJ reports that nearly 94 percent of verified losses have been compensated over the last fifteen years. It is widely considered to be a success given that many investors were worried they would recover little or nothing from the Ponzi scheme.
Why So Much was Able to Be Recovered for the Victims of the Ponzi Scheme
The remarkable (nearly) 94 percent recovery for Madoff Ponzi scheme victims resulted from a number of strategic legal actions and criminal and civil settlements. The Madoff Victim Fund—which is managed by the United States Department of Justice—secured substantial recoveries by pursuing third parties who benefited from or enabled the fraud. Key settlements included $2.6 billion from JPMorgan Chase and $7.2 billion from the estate of Jeffry Picower. Mr. Picower was a very close associate of Bernie Madoff. The Trustee for the liquidation of Madoff’s firm also employed “clawback” lawsuits to reclaim funds paid to early investors who profited from the scheme at the expense of other investors.
Get Help From Our Miami Ponzi Scheme Attorney Today
At Carlson & Associates, P.A., our Miami Ponzi scheme attorneys are committed to fighting for the rights and interests of investors. If you suffered losses in any type of investment fraud scheme, we are more than ready to help. With an office in Miami, our team provides Ponzi scheme representation in Miami-Dade County, Broward County, Palm Beach County, and beyond.
Source:
ibtimes.com/bernie-madoff-ponzi-scheme-victims-repaid-3757395