THE TRUSTEE in charge of recovering assets from Bernie Madoff’s fraudulent investment scheme expects to reach financial settlements over the coming weeks with a handful of investors who reaped profits.
Irving Picard, the court-appointed trustee, said yesterday he expected “significant settlements”, although he declined to say whether he was negotiating with parties against whom he has already filed suit, or as yet unnamed beneficiaries of Madoff’s Ponzi scheme.
This week, Mr Picard filed suit against Jeffry and Barbara Picower, seeking the return of $5.1 billion the couple allegedly withdrew from the Madoff funds over the years. He has also filed suits against other parties, including Harley International, a hedge fund, seeking $5 billion.
In all, the Madoff fraud is supposed to have taken in more than $64 billion over two decades. Mr Madoff pleaded guilty this year and a federal judge yesterday scheduled his sentencing for June 29th.
Mr Picard said he expected Securities Investor Protection Fund (Sipc) commitments to compensate victims of the fraud to exceed $100 million this month. So far, Sipc has agreed to pay out more than $61 million to 125 victims.
In all, 8,884 claims have been filed in connection with 3,565 customer accounts at Bernard L Madoff Investment Securities.
So far, Mr Picard has recovered some $1 billion in Madoff-related assets. – Copyright Financial TimesLimited 2009
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