The U.S. Department of Justice has announced the final distribution of funds to victims of Bernard L. Madoff’s infamous Ponzi scheme, bringing total compensation to more than $4.3 billion. The tenth and final payout of $131.4 million will be distributed to over 23,000 victims worldwide, covering nearly 94% of their losses.
The Madoff Victim Fund, which has compensated more than 40,000 victims in 127 countries, marks the culmination of a decade-long effort to trace and recover assets tied to the largest Ponzi scheme in history. Many recipients of the funds are small investors who lost less than $500,000 in the fraud.
“This Office has never stopped pursuing justice for the victims of history’s largest Ponzi scheme,” Acting U.S. Attorney Edward Y. Kim for the Southern District of New York said. “With this final distribution, we have succeeded in compensating tens of thousands of victims, demonstrating our unwavering commitment to protecting and assisting those harmed by financial crime.”
Principal Deputy Assistant Attorney General Brent S. Wible praised the unprecedented scope of the recovery effort, crediting the Justice Department’s Money Laundering and Asset Recovery Section for spearheading the remission program. “The department’s Asset Forfeiture Program has proven its ability to recover assets and compensate victims, achieving an extraordinary result in the Madoff case,” Wible said.
Bernard L. Madoff, once a highly respected financier, admitted in 2009 to orchestrating a decades-long fraud that bilked billions of dollars from his clients. Using his firm, Bernard L. Madoff Investment Securities LLC, he lured investors with promises of consistent, high returns while diverting their funds for personal enrichment and to sustain his fraudulent scheme.
Madoff pleaded guilty to 11 federal felonies in 2009 and was sentenced to 150 years in prison. Key recoveries for victims include $2.2 billion from the estate of Madoff investor Jeffry Picower, $1.7 billion from a deferred prosecution agreement with JPMorgan Chase, and additional funds from forfeitures involving Madoff’s family and associates.
FBI Assistant Director James E. Dennehy emphasized the significance of this recovery, describing it as a landmark achievement in victim compensation. “Today’s distribution is a testament to the tireless efforts of law enforcement to hold perpetrators accountable and recover stolen assets for victims,” he said.
The Madoff Victim Fund, overseen by former SEC Chairman Richard Breeden as Special Master, evaluated over 66,000 claims to ensure equitable payouts to eligible victims. Breeden’s work was instrumental in unraveling complex financial transactions and computing fraud losses.
This case was handled by the U.S. Attorney’s Office for the Southern District of New York’s Illicit Finance and Money Laundering Unit, along with the Justice Department’s Money Laundering and Asset Recovery Section. Assistant U.S. Attorney Tara M. La Morte led the prosecution.
