Bernard Madoff Victims Receive $4.3 Billion in Payouts from US Government Fund
Bernard Madoff’s victims have received some relief as the U.S. government fund set up to compensate them completes its final payouts. A total of $4.3 billion has been distributed to 40,930 victims of the Ponzi scheme orchestrated by Madoff.
Richard Breeden, the former SEC chairman overseeing the Madoff Victim Fund, announced that a final payout of $131.4 million will be distributed among 23,408 claimants, marking the end of all available forfeited assets being distributed. This means that victims, including individuals, schools, charities, and pension plans, will have recovered an average of 93.71% of their proven losses by the fund’s closure in 2025.
In addition to the fund’s payouts, Irving Picard, the trustee handling the liquidation of Madoff’s former firm, has recouped an additional $14.72 billion for customers of Bernard L. Madoff Investment Securities LLC. This brings the total amount recovered for Madoff victims to around $19 billion. Unlike Picard, Breeden also made payouts to victims who lost money indirectly through “feeder” funds, with claimants from 127 countries receiving compensation.
Breeden emphasized the importance of ensuring that all victims were accounted for and compensated fairly, regardless of how they were affected by Madoff’s scheme. While acknowledging Madoff’s “complete depravity,” Breeden also highlighted the need for caution and vigilance when it comes to investing and safeguarding savings.
The fund was primarily funded through settlements with Madoff’s former bank, JPMorgan Chase, and with the estate of former Madoff investor Jeffry Picower. Initially holding $4.05 billion, the fund grew as additional assets were recovered by the Justice Department.
Madoff’s fraudulent activities, estimated at up to $64.8 billion, went undetected for many years until his confession to his sons in December 2008. He eventually pleaded guilty to multiple criminal charges and passed away in 2021 while serving a lengthy prison sentence.
