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Updated August 17, 2016: Where can I find information on the claims process and distributions of funds that were forfeited to the U.S. government in connection with the Madoff fraud?

Determination of claims and distribution of funds from the Madoff Victim Fund (MVF) will be done under the supervision of Richard C. Breeden, who was appointed Special Master of the MVF by the Department of Justice. The MVF consists of more than $4 billion gathered to date through various criminal and civil forfeiture actions brought by the United States Attorney's Office for the Southern District of New York.

For further information regarding the Madoff Victim Fund, Special Master Richard C. Breeden, and forfeitures to the U.S. Department of Justice in the Madoff Ponzi scheme criminal cases, please contact:

Madoff Victim Fund
P.O. Box 6310
Syracuse, New York 13217
(866) 624-3670
info@madoffvictimfund.com
www.madoffvictimfund.com 

The Special Master's customer service team can be reached Monday through Friday from 8:30 am to 5:00 pm EST.

 

Updated August 17, 2016: Why can’t all of the recovered funds be distributed now?

The primary reason why significant funds are not available for distribution at this time is required reserves.

Required Customer Fund Reserves for Deemed Determined Claims

First, while the number of allowed claims is – to date – 2,597 and the dollar amount of allowed claims to date is approximately $15.080 billion, both the number of allowed claims and the dollar amount will increase. There remain 71 claims which have been "deemed determined" by the SIPA Trustee; however, the final status of each claim remains contingent on the outcome of its respective litigation. If a “deemed determined” claim becomes allowed, it would become eligible for all pro rata distributions to date, currently totaling up to 58.369 percent of the amount of the allowed claim. For this potential scenario, the SIPA Trustee has, to date, reserved approximately $1.934 billion. 

General Reserve

As of August 17, 2016, the general reserve is $200 million. 

Other Customer Fund Required Reserves

As of August 17, 2016, approximately $35.7 million must be reserved in the Customer Fund for certain deferred payments, unallocated funds and other matters related to the liquidation.

Amount Unavailable to the Customer Fund Due to Required Reserves and Appeals

Portions of recoveries related to certain settlement agreements must be held in reserve due to appeals and other issues. These funds cannot be either allocated to the Customer Fund or distributed to BLMIS customers with allowed claims until these issues are resolved. As of August 17, 2016, approximately $232.1 million relating to settlement reserves and other matters must be held in reserve.