The first payments are about to be sent out to victims who invested with Wall Street trader Bernard L. Madoff.
The broker, who ran a classic pyramid Ponzi scheme, was arrested in December 2008 after confessing to having defrauded investors of an estimated $50 billion.
Madoff was a supporter of numerous Jewish organizations, many of which suffered severe losses as a result of the fraud, and some of which closed down programs altogether. He pleaded guilty to the charges in March 2009 and was sentenced to 150 years in prison, which he is now serving.
Trustee Irving Picard, who is overseeing the liquidation of Madoff's investment fund, said in a statement Tuesday that disbursement will begin Wednesday.
“This initial distribution is the first return of stolen funds to Madoff's defrauded customers,” said Picard. “Significant, additional funds – currently unavailable for distribution due primarily to appeals – will ultimately be returned to their rightful owners, as well as future monies yet to be recovered. The need among many Madoff customers is urgent, and we are working to expedite these distributions.”
The initial payout will total $312 in recovered funds, and represents approximately 4.6 cents on every dollar lost to the 1,230 accounts that are included in the disbursement.
According to the website of Bernard L. Madoff Investment Securities LLC, now in receivership, of the 16,516 claims in the case, only 2,419 were allowed, 153 are still in litigation and 2 are yet to be determined, with claims totaling $6,960,791,062.
Madoff's eldest son, Mark killed himself in a Manhattan apartment in December 2010, two years to the day after his father was arrested. The younger Madoff was never charged in the massive fraud, but there were questions about his involvement and that of his younger brother Andrew. It was believed that the pressure resulting from the investigation eventually led to his suicide.