The Department of Justice of the United States announced the start of the tenth and final distribution of funds for victims of the Ponzi scheme Bernard L. Madoff. The Madoff Victim Fund (MVF) began sending over $13.4 million to more than 23,000 victims worldwide, leading to a grand total of over $4.3 billion spread over 10 years. This marks an important milestone in compensating victims of the largest financial fraud scheme in history. A big difference with Italy given that the victims of scams (from Cirio And Parmalat until Popular Venetians) were essentially left empty-handed.
With this latest deployment, the MVF has achieved 93.71% loss recovery for more than 40,000 casualties. Most of them were small investors who had lost less than $500,000 in the intricate scam orchestrated by Madoff. The important recovery work was possible thanks to the confiscation of the assets involved in the deal, which was managed by the Department of Justice through the Criminal Division and its Money Laundering and Asset Recovery Section (MLARS).
“This exceptional achievement demonstrates how asset confiscation can not only deprive criminals of their wealth, but also return vital resources to victims,” he said Brent S. WibleDeputy Attorney General for the Criminal Division. “The scope and complexity of this compensation process shows the Department of Justice’s commitment to pursuing justice, even when dealing with such large and intricate cases.”
Over the course of these ten years, funds were recovered from several sources, including the civil recovery of approximately $2.2 billion from the deceased investor’s estate Jeffry Picower and another $1.7 billion through a settlement with JPMorgan Chase Bank. Funds were distributed to 40,930 victims in 127 countries, with recovery covering almost all of their losses.
Bernard L. Madoffwho founded his investment advisory business in 1960, used his position to perpetuate one of the most devastating frauds in history. In 2009, Madoff pleaded guilty to 11 federal crimes, admitting that he orchestrated the largest Ponzi scheme ever, which caused billions of dollars in damages. Sentenced to 150 years in prison, Madoff he benefited himself and his inner circle, causing huge losses to thousands of unsuspecting investors.
Compensation for the victims was made possible thanks to the tireless efforts ofFBIwhich worked hand in hand with the Department of Justice to recover the stolen assets. James E. DennehyDeputy Director of the New York FBI, commented: “These victims had trusted Madoff and they suffered enormous damage. The FBI will continue to work with the Department of Justice to ensure that criminals are stripped of their assets and that victims are compensated.”
This tenth distribution represents the culmination of a long process of victim identification and compensation, which involved the review of thousands of petitions and a complex analysis of individual losses. The MVF is supervised by Richard Breedenformer chairman of the Securities and Exchange Commission, who led the team evaluating losses and calculating compensation.
The return of resources to their rightful owners is a priority of Department of Justicewhich has returned more than $12 billion to crime victims since 2000 through its asset forfeiture program. With the conclusion of this long legal battle, the Department of Justice reiterates its commitment to protecting victims of financial crimes by returning what has been stolen from them.
