By Jonathan Stempel
NEW YORK (Reuters) – The U.S. government fund established to compensate victims of Bernard Madoff’s Ponzi scheme announced its final distribution on Monday, marking the end of its tenth payout. The Madoff Victim Fund disclosed that a total of $4.3 billion has been distributed to 40,930 individuals and entities who were defrauded by Madoff.
Richard Breeden, the former chairman of the U.S. Securities and Exchange Commission overseeing the fund, revealed that a final payout of $131.4 million will be distributed to 23,408 claimants, representing the distribution of all available forfeited assets.
Victims, including individuals, schools, charities, and pension plans, have recovered an average of 93.71% of their losses through the fund, which is set to close in 2025. Additionally, Irving Picard, the trustee liquidating Madoff’s former investment firm, has recouped an additional $14.72 billion for customers.
This brings the total payout to Madoff victims to approximately $19 billion, with funds distributed to claimants in 127 countries. Breeden emphasized the importance of ensuring that all victims were compensated fairly and equitably.
While acknowledging Madoff’s “complete depravity,” Breeden highlighted the significance of remaining cautious and vigilant when investing money and safeguarding savings.
The fund, primarily funded by settlements with JPMorgan Chase and the estate of former Madoff investor Jeffry Picower, originally held $4.05 billion but grew due to additional asset recoveries by the Justice Department.
Madoff’s massive fraud, estimated at up to $64.8 billion, remained undetected for years until his confession to his sons in December 2008, leading to his eventual guilty plea to multiple criminal charges. Madoff passed away at the age of 82 in April 2021 while serving a lengthy prison sentence.
