SIPC: $5.44 Billion Now Distributed To Madoff Victims

Mon Apr 1, 2013 12:58pm EDT

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Madoff Trustee's Third Distribution Sends Approximately  $506.2 Million  to
Customers With Allowed Claims

WASHINGTON,  April 1, 2013  /PRNewswire-USNewswire/ -- With the distribution of
approximately  $506.2 million  to victims in the liquidation of Bernard L.
Madoff Investment Securities LLC (BLMIS), a total of $5.44 billion will now have
been distributed to BLMIS customers with allowed claims.   The Securities
Investor Protection Corporation (SIPC) today applauded the hard work of Trustee 
Irving H. Picard  and his attorneys in their continued efforts to recover and
return funds to BLMIS customers.

When combined with the funds already returned to BLMIS customers from the
Customer Fund and advances from SIPC, more than 50 percent of the total Madoff
accounts with allowed claims will be fully satisfied following the third interim
 pro rata  distribution. A total of 1,106 accounts will be fully satisfied
following the third interim distribution out of a total of 2,178 accounts with
allowed claims.   

Since  December 2008,  $9.32 billion  has either been recovered or agreements
reached to recover funds to return to BLMIS customers.  This amount is more than
53 percent of the approximately  $17.5 billion  in principal estimated to have
been lost by BLMIS customers who filed allowed claims. The Trustee's recovery of
more than  $9.32 billion  has been made possible through advances provided by
SIPC, which is funded by the securities industry.  To date, SIPC has committed
approximately  $807 million  to pay customer claims and over $718 million to
fund the liquidation proceeding.  No monies recovered by the Trustee have been
used to pay any administrative expenses.  All recoveries made by the Trustee
benefit customers.   

SIPC President  Stephen Harbeck  said:  "Thanks to the significant Tremont Funds
settlement, which allocated more than  $1 billion  to the BLMIS Customer Fund,
and additional funds recovered by Trustee Picard and his team since last fall,
additional distributions continue to be made in an effort to fully satisfy as
many BLMIS allowed claims as possible. We applaud the hard work Trustee Picard
has undertaken to recover monies and distribute them to customers at the failed
BLMIS brokerage.  His successful efforts have resulted in the ability to fully
satisfy more than half of the BLMIS accounts with allowed claims, a significant
achievement.  SIPC is pleased to continue to facilitate the work of the Trustee
to make possible the maximum recovery and return of funds to customers. "


The Securities Investor Protection Corporation is the U.S. investor's first line
of defense in the event of the failure of a brokerage firm owing customers cash
and securities that are missing from customer accounts. SIPC either acts as
trustee or works with an independent court-appointed trustee in a brokerage
insolvency case to recover funds.

The statute that created SIPC provides that customers of a failed brokerage firm
receive all non-negotiable securities - such as stocks or bonds -- that are
already registered in their names or in the process of being registered. At the
same time, funds from the SIPC reserve are available to satisfy the remaining
claims for customer cash and/or securities held in custody with the broker for
up to a maximum of  $500,000  per customer. This figure includes a maximum of 
$250,000  on claims for cash. From the time Congress created it in 1970 through 
December 2011, SIPC has advanced  $ 1.8 billion  in order to make possible the
recovery of  $ 117.5 billion  in assets for an estimated 767,000 investors.

All non-media/investor inquiries of SIPC should be directed to
 or (202) 371-8300.  

SOURCE  Securities Investor Protection Corporation,  Washington, D.C.

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