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Madoff Fund Completes Final Payment to Victims, Reaches $4.3B in Recovered Losses
ByAinvest
Wednesday, Jan 1, 2025 3:14 am ET1min read
The Madoff Victim Fund has begun its final payment to victims of the massive financial fraud, totaling $131.4 million. This brings the total recovered to over $4.3 billion, benefiting 40,930 victims in 127 countries. The payments aim to compensate those who lost money when Madoff's firm collapsed in 2008.
The Madoff Victim Fund (MVF) has initiated its final distribution of $131.4 million to victims of Bernard L. Madoff Investment Securities LLC's massive financial fraud [1]. This brings the total amount recovered by the fund to over $4.3 billion, benefiting 40,930 victims in 127 countries.The latest distribution, the tenth since the fund's inception, pays 2.71% to each victim, bringing their total recoveries to 93.71% from all sources [1]. Special Master Richard C. Breeden of the Madoff Victim Fund announced the news, expressing delight at the realization of the fund's dreams to help victims with shattered lives [1].
When MVF was established, there was a significant lack of knowledge about the true dimensions of the fraud. While direct investors' losses had been studied in bankruptcy, the losses of indirect investors, who are not eligible for bankruptcy recoveries, had not been analyzed [1]. However, after publishing the Plan of Distribution and petition forms, MVF received over 65,000 petitions covering losses of over $80 billion [1].
Despite the challenges, MVF was determined to help as many victims as possible to the fullest extent. The fund traced the flow of funds that reached Madoff back to the individuals to whom they belonged and made over 246,000 direct payments to victims [1].
The Madoff scandal, which came to light in 2008, is considered one of the largest and most notorious cases of financial fraud in history. Madoff, who pleaded guilty to securities fraud, money laundering, and other charges, is currently serving a 150-year prison sentence [2].
References:
[1] MVF Distribution 10: https://madoffvictimfund.com/
[2] Bernard L. Madoff: https://www.biography.com/business-leaders/bernard-l-madoff
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