On Thursday, Sept 16 - September 16 - -- New York - Victims of Bernard Madoff's Ponzi scheme can expect to receive another $568 million to cover their losses, U.S. Department of Justice said, boosting total recoveries above $1.8 billion.
Payouts to nearly 31,000 victims will come from the Madoff Victim Fund, a $4.05 billion government fund set up in 2013 and managed by former U.S. Securities and Exchange Commission Chairman Richard Breeden.
After its seventh distribution, the Fund will have to be paid out more than $3.7 billion to individuals, schools, charitable organisations, pension plans and others.
More than 42,000 claimants are eligible to receive payouts from Investigator. The latest distribution boosts their recovery from all sources to 81.35% of their losses, Justice Department said.
Another $14.5 billion has been liquidated in bankruptcy by the court-appointed trustee for customers of the former Bernard L. Madoff Investment Securities LLC.
Madoff was arrested in December 2008 after admitting his fraud to his sons and one day after its firm's annual Christmas party.
He was sentenced to 11 charges three months later and pleaded guilty on 14 April to criminal charges and died at age 82.
Most of the government fund came from a Justice Department settlement with Madoff's former bank JPMorgan Chase Co and a settlement between the trustee Irving Picard and the estate of former Madoff investor Jeffry Picower.
The fund pays victims who lost money directly with Madoff, and third parties that lost money indirectly, such as by investing in feeder funds. In contrast, Picard awards money only to former Madoff customers who he estimates lost $17.5 billion.