Madoff victims to receive $2.48 billion payout

File photo of Bernard Madoff walking back to his apartment in New York.

Victims of Bernard Madoff’s fraud will soon receive $2.48 billion to help cover their losses, more than tripling their total recovery to about $3.63 billion, the trustee liquidating the imprisoned swindler’s firm said.

Checks ranging from $1,784 to $526.9 million were mailed on Wednesday to 1,230 former customers of Bernard L. Madoff Investment Securities LLC, according to trustee Irving Picard. The average payout is $2.02 million.

Madoff’s victims earlier recovered $1.15 billion, including sums committed by the Securities Investor Protection Corp, which helps customers of failed brokerages.

U.S. Bankruptcy Judge Burton Lifland in Manhattan authorized the latest distribution last month following two legal victories for the trustee.

In June, the U.S. Supreme Court let stand a lower court decision that endorsed Picard’s methods for calculating losses. In July, a former Madoff customer dropped a court challenge to a $7.2 billion forfeiture by the estate of Madoff investor Jeffry Picower. Of that sum, $5 billion would go to the Madoff firm’s estate, and the rest to the U.S. government.

Picard has recovered $9.15 billion, or 53 percent of the $17.3 billion he believes was lost in Madoff’s Ponzi scheme.

The trustee is holding some funds in reserve as some Madoff victims pursue their own cases to recover more money.

Picard said this litigation is delaying further distributions. The trustee is also appealing court decisions that have limited his claims against banks such as JPMorgan Chase & Co that did business with Madoff.

A spokeswoman for Picard was not immediately available to comment on the latest distribution.

The market for trading claims on potential recoveries from Madoff’s estate will adjust for the distribution, according to Joseph Sarachek, managing director of claims trading at CRT Capital Group LLC, a Stamford, Connecticut-based broker-dealer.

He said claims that recently traded at around 69 cents on the dollar will likely soon trade in the 30s. “The Madoff market is fairly volatile,” Sarachek said. “The real question is when people think the next distribution will be.”

Lifland has authorized Picard and his law firm, Baker & Hostetler, to bill $321.2 million of legal fees to pursue Madoff cases for the period ended January 31, 2012.

Madoff was arrested in December 2008 and pleaded guilty three months later. The 74-year-old is serving a 150-year sentence in a North Carolina federal prison.


News
Entertainment
Sports
Lifestyle
Local

10 green ideas for New York City this…

This Earth Day, pundits share their ideas to better green New York City.

Local

Carriage horse activists picket Liam Neeson's UWS home

Several dozen picketers lined the sidewalk outside of Liam Neeson's Upper West Side apartment building on Saturday to protest the actor's support of the New…

Local

Former cop shoots wife in front of children…

Former cop Kevin Canty, 43, was arrested over the weekend after police say he shot and killed his wife in their Ozone Park home.

Local

Two young children killed in deadly Queens fire

Two 4-year-old children died after a blaze at their Far Rockaway home on Saturday night. The Queens fire injured three others, including a third sibling.

Television

'Orphan Black' recap: Episode 1, ‘Nature Under Constraint…

Welcome to your first Season 2 “Orphan Black” recap! Hopefully Tatiana Maslany can help Tatiana Maslany get through this, with the help of Tatiana Maslany,…

Entertainment

Whoopi Goldberg makes her debut as marijuana columnist

"It helps my head stop hurting, and with glaucoma your eyes ache, and she takes the ache out. It's wonderful," she said.

The Word

Kate Middleton made fun of Prince William's bald…

Kate Middleton and Prince William are in Sydney, Australia, right now, and it sounds like that brash Aussie sense of humor might be rubbing off.

The Word

Is Tom Cruise dating Laura Prepon?

"Mission: Impossible" star Cruise is said to be dating Laura Prepon, star of "Orange is the New Black."

NBA

Deron Williams leads Nets over Raptors in Game…

The Nets traveled to a raucous Air Canada Centre but came out with an important Game 1 victory over the Raptors.

NBA

Carmelo Anthony agonizing over Knicks future as season…

There’s still the cloud hanging over the franchise’s head as to the pending free-agent status of All-Star forward Carmelo Anthony.

NFL

Jets host players with eye toward NFL Draft

The Jets hosted a number of NFL Draft hopefuls for workouts on Thursday, with an eye toward some under-the-radar players.

NFL

Chris Johnson: I wanted to go to 'a…

Now that Chris Johnson is a Jet, the team has to figure out if one of the most explosive players in the NFL over the last half decade has anything…

Parenting

Is camp right for introverts?

We ask an expert for tips on sending your introverted child to camp

Parenting

How to parent without gender stereotypes in a…

Christia Spears Brown, Phd. author of "Parenting beyond Pink & Blue" gives advice on raising kids free of gender stereotypes.

Tech

VIDEO: 'Vein-scanning' may become the future of paying

Designed to make transactions quicker and easier, the technology works by scanning the unique vein patterns in each person's palm.

Tech

#FollowFriday: 10 of the smartest Twitter accounts

Spending lots of time on Twitter? You might as well learn something. Here are some of the smartest accounts to follow.