(Reuters) - The trustee liquidating assets of accused swindler Bernard Madoff has allowed 12 claims from investors so far and will be paying $500,000 each.
Irving Picard, the trustee, began issuing determination letters on claims during the last week of February and will be paying the 12 claimants from funds advanced to him by the Securities Investor Protection Corp (SIPC), he said in a statement.
SIPC, a nonprofit agency set up by Congress to maintain a fund to help investors who had accounts at failed brokerage firms, can pay a single investor a maximum of $500,000.
Each of the allowed claims exceed the $500,000 statutory limit and the claimants will be entitled to participate in future distributions the trustee will make from recoveries.
The trustee expects to issue additional determination letters “as promptly as possible” and make appropriate payments.
Reporting by Ratul Ray Chaudhuri in Bangalore; Editing by Lincoln Feast