New York (HedgeCo.net) – Approximately $355 million is being released to victims of the Madoff hedge fund Ponzi scheme, the Securities Investor Protection Corporation (SIPC) announced today. A separate settlement involving $497 million with “feeder funds” Herald Fund and Primeo Fund, will bring the total recovery to date in the Madoff liquidation proceedings to $10.551 billion.
This is the fifth distribution of recovered funds to Madoff customers by Irving Picard, the Trustee for the SIPA liquidation of Bernard L. Madoff Investment Securities LLC.
“The prospect of amassing $10 billion in recoveries for Madoff victims was not viewed by many as a serious possibility at the start of the case.” SIPC President Stephen Harbeck said. “The legal tools available to Trustee Picard under the Securities Investor Protection Act and the Bankruptcy Code have made it possible for him to make the most equitable distribution possible. I am hopeful that this settlement will serve as a template for the resolution of other so-called ‘feeder fund’ claims. As remaining legal disputes continue to be resolved, we look forward to sharing news of additional distributions to Madoff customers.”
The total amount distributed in the Madoff liquidation proceeding so far exceeds $7.2 billion, covering more than 54 percent of the losses of allowed claimants. The overall figure of $7.2 billion includes $823.7 million in committed advances from SIPC.
From the time Congress created SIPC in 1970 through December 2013, SIPC has advanced $2.1 billion in order to make possible the recovery of $133 billion in assets for an estimated 772,000 investors.
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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