Posted on 12/10/2020 4:04:11 PM PST by ransomnote
The Department of Justice announced today that the Madoff Victim Fund (MVF) began its sixth distribution of approximately $488 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, bringing the total distributed to almost $3.2 billion to nearly 37,000 victims worldwide.
In this distribution, payments will be sent to over 30,000 victims across the globe, bringing their total recovery to 80.05 percent. This distribution represents the sixth in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS. The MVF has received over 65,000 petitions from victims in 136 countries.
“With the $488 million distributed today, the department has now returned almost $3.2 billion to Madoff’s victims, allowing them to recover more than 80 percent of what they lost,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This exceptional work – and there is more to come – has been made possible by the department’s steadfast commitment to the pursuit of the proceeds of fraud through civil forfeiture.”
“This office continues its efforts to seek justice for victims of history’s largest Ponzi scheme,” said Acting U.S. Attorney Audrey Strauss of the Southern District of New York. “Today’s additional payments of more than $488 million by this office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represent the sixth in a series of distributions that will leave victims with compensation for more than 80 percent of their losses. That is an extraordinary level of recovery for a Ponzi scheme – but our work is not yet finished, and the office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s heinous crimes continues.”
For decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle.
On June 29, 2009, U.S. District Judge Denny Chin sentenced Madoff to serve 150 years in prison for running the largest fraudulent scheme in history. Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case.
The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings. The Department of Justice also acknowledges the sacrifice of numerous individuals during this period of quarantine due to COVID-19 to ensure that this distribution occurred and remained on schedule.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or info@madoffvictimfund.com.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Who cares?
Inquiring minds want to know.
I agree. Why are these people special? It is certainly said when people get fleeced - albeit when someone is offering unusually high returns, you have the onus to be extremely careful - but why should the taxpayers be on the hook to bail them out for their misfortune? Do we bail out people who lose money in casinos, or make other poor investments?
Incarceration
FCI Butner Medium, where Madoff is incarcerated
Madoff’s attorney asked the judge to recommend that the Federal Bureau of Prisons place Madoff in the Federal Correctional Institution, Otisville, which is located 70 miles (110 km) from Manhattan. The judge, however, only recommended that Madoff be sent to a facility in the Northeast United States. Madoff was transferred to the Federal Correctional Institution Butner Medium near Butner, North Carolina, about 45 miles (72 km) northwest of Raleigh; he is Bureau of Prisons Register #61727-054.[125][126] Jeff Gammage of The Philadelphia Inquirer said, in regards to his prison assignment, “Madoff’s heavy sentence likely determined his fate.”[127]
Madoff’s projected release date is November 14, 2139.[126][128] The release date, described as “academic” in Madoff’s case because he would have to live to the age of 201, reflects a reduction for good behavior.[129] On October 13, 2009, it was reported that Madoff experienced his first prison yard fight with another inmate, also a senior citizen.[130] When he began his sentence, Madoff’s stress levels were so severe that he broke out in hives and other skin maladies soon after.[131]
On December 18, 2009, Madoff was moved to Duke University Medical Center in Durham, North Carolina, and was treated for several facial injuries. A former inmate later claimed that the injuries were received during an alleged altercation with another inmate.[132]
Other news reports described Madoff’s injuries as more serious and including “facial fractures, broken ribs, and a collapsed lung”.[131][133] The Federal Bureau of Prisons said Madoff signed an affidavit on December 24, 2009, which indicated that he had not been assaulted and that he had been admitted to the hospital for hypertension.[134]
In his letter to his daughter-in-law, Madoff said that he was being treated in prison like a “Mafia don”.
They call me either Uncle Bernie or Mr. Madoff. I can’t walk anywhere without someone shouting their greetings and encouragement, to keep my spirit up. It’s really quite sweet, how concerned everyone is about my well being, including the staff […] It’s much safer here than walking the streets of New York.[135]
After an inmate slapped Madoff because he had changed the channel on the TV, it was reported that Madoff befriended Carmine Persico, boss of the Colombo crime family since 1973, one of New York’s five American Mafia families.[136] It was believed Persico had intimidated the inmate who slapped Madoff in the face.[137]
On July 29, 2019: Bernie Madoff had asked Donald Trump for a reduced sentence/pardon on his sentence for the Ponzi Scheme, to which the White House and Donald Trump made no comment. [138]
In February 2020 his lawyer filed for compassionate release from prison on the claim that he was suffering from chronic kidney failure, a terminal illness and had less than 18 months to live. He was hospitalized for this condition in December 2019.[139] The request was denied due to the severity of Madoff’s crimes.[140]
“Who cares?”
The bloodsucking attorney$.
The country is just rolling in money. See, the printing presses are cranking it out 24/7. What could go wrong?
Given the scale and ramifications of the ongoing coup, the Madoff matter is an absurd diversion. I get that lawyers care but we have a president to save. BTW, Hunter Biden makes Madoff look like a candy store stick up man.
I know some are hoping that all crime will cease to be prosecuted until the 2020 election is settled, but that would leave the country in a shambles. It’s GOOD when criminals are prosecuted. It’s GOOD when victims receive compensation. More is better - more people getting restitution is the goal.
ML/NJ
Anything new on the Son of Sam? The Zodiac Killings?
Not sure but I have been involved in one of these and in my case the funds distributed were from liquidation of the company’s assets. In my case 60% were recovered and returned.
All they will end up losing is whatever gains they hoped to make and the legal costs.
Glad to hear the crowd who “got burned by Bernie” and said “Madoff made off with my money” have been able to claw some of it back.
Of course, the returns he was touting should have made the investors a bit suspicious, IMHO.
Who care's, now The Zodiac Killings, I'm all in. /s
A question for the fellow Freepers: I heard one time early in the / this case, that they were thinking / talking about going after the "early winners," to claw back some money.
Well??? did they, or didn't they, seek money from the early winners of this Ponzi scheme?
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