5 Key Madoff Facts 5 Years Later

5 Key Madoff Facts 5 Years Later

 Much has happened in the five years since Bernard Madoff’s Ponzi scheme unraveled and he was arrested. Here are five key Madoff facts as selected by the Financial Fraud Law Blog and the Financial Fraud Law Report:

  1. The trustee overseeing the liquidation of Madoff’s business and efforts to recover assets and pay back investors and other creditors, Irving H. Picard, has recovered approximately $9.35 billion.
  2. To date, Picard has distributed approximately $5.5 billion of the $9.35 billion to Madoff customers.
  3. The $9.35 billion is about 53 percent of the $17.5 billion of principal that Picard calculates was lost in the Madoff Ponzi scheme by those who filed claims (according to Picard, about $20 billion in principal was lost in total). Of course, this amount is significantly lower than the amount investors have claimed that they lost, based on the “statements” prepared by Madoff for them.
  4. The worldwide nature of the Ponzi scheme is evident from the fact that the trustee’s counsel recently said that they are “actively investigating and seeking to recover assets” from jurisdictions including Austria, the Bahamas, Bermuda, the British Virgin Islands, Canada, the Cayman Islands, England, France, Gibraltar, Guernsey, Ireland, Israel, Liechtenstein, Luxembourg, Spain, and Switzerland.
  5. Investors are not the only losers in the Madoff fraud. Vendors, taxing authorities, employees, broker-dealers, and other creditors have asserted losses totaling approximately $1.7 billion. They are unlikely to receive a dime.

We will continue to discuss some Madoff developments in upcoming posts on the Financial Fraud Law Blog.

 Contact the author at smeyerow@optonline.net

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