Recoveries, Distributions and SIPC Commitment
December 11, 2008 to February 06, 2015

As of February 6, 2015, the Securities Investor Protection Act (SIPA) Trustee has recovered or entered into agreements to recover approximately $10.551 billion, representing more than 60 percent of the estimated $17.5 billion in principal lost in the Ponzi scheme by Bernard L. Madoff Investment Securities LLC (BLMIS) customers who filed claims. This recovery far exceeds any prior restitution efforts related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims. The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by the Securities Investor Protection Corporation (SIPC), which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims.

Bar Graph: Recoveries to Reported Fees Ratio

Distributions and SIPC Commitment Breakdown

DISTRIBUTIONS FROM CUSTOMER FUND

As of February 6, 2015:

Fifth Pro Rata Interim Distribution

The fifth pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible customers commenced on February 6, 2015. As of that date, approximately $355.8 million has been distributed to BLMIS account holders with allowed claims in the fifth distribution, representing approximately 2.743 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

Fourth Pro Rata Interim Distribution:

The fourth pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible customers commenced on May 5, 2014. As of February 6, 2015, approximately $413 million has been distributed to BLMIS account holders with allowed claims in the fourth distribution, representing approximately 3.180 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied. 

Third Pro Rata Interim Distribution:

The third pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible customers commenced March 29, 2013. As of February 6, 2015, approximately $614.3 million has been distributed to BLMIS accounts with allowed claims in the third distribution, representing approximately 4.721 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

Second Pro Rata Interim Distribution:

As of February 6, 2015, approximately $4.395 billion has been returned to BLMIS customers with allowed claims through the second pro rata interim distribution, which represents approximately 33.556 percent of the allowed claim amount of each individual account, unless the claim has been fully satisfied. The second distribution commenced on September 19, 2012.

First Pro Rata Interim Distribution:

As of February 6, 2015, approximately $605.2 million has been returned to BLMIS customers with allowed claims through the first pro rata interim distribution, which represented approximately 4.602 percent of the allowed claim amount of each individual account, unless the claim was fully satisfied. The first distribution commenced on October 5, 2011.

Amount of SIPC advances reimbursed to SIPC on fully satisfied accounts:

The Securities Investor Protection Corporation (SIPC) is authorized to administer funds to customers of failed brokerage firms as an advance against recovered assets. In the BLMIS liquidation proceeding, SIPC has to date advanced approximately $823.7 million to the SIPA Trustee for distribution to BLMIS customers with allowed claims.

According to the provisions of the Securities Investor Protection Act (SIPA), under which SIPC was created, SIPC is reimbursed for advances to customers once each respective customer claim is fully satisfied. As of the fifth pro rata interim distribution in the BLMIS liquidation proceeding, SIPC received $125.3 million in reimbursement from the Customer Fund for advances paid on fully satisfied accounts.

Icon: More Information$6.508 Billion
SIPC COMMITTED FUNDS SUBJECT TO SUBROGATION*

In the Bernard L. Madoff Investment Securities LLC (BLMIS) liquidation, the Securities Investor Protection Corporation (SIPC) has made cash advances – up to a maximum of $500,000 per allowed claim – available to the court-appointed Securities Investor Protection Act (SIPA) Trustee to distribute to eligible customers, as a way to expedite financial relief to these customers. As of February 6, 2015, SIPC has committed approximately $823.7 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation.

According to the provisions of SIPA, SIPC is reimbursed for its advances to customers once each respective customer claim is fully satisfied. As of the fifth pro rata interim distribution in the BLMIS liquidation proceeding, SIPC received $125.3 million in reimbursement from the Customer Fund for advances paid on fully satisfied accounts.

*In this instance, the term "subrogation" refers to the reimbursement to SIPC of cash advances made to BLMIS customers, once the respective allowed customer claim has been fully satisfied.

Icon: More Information$698.4 Million

For additional information on the Customer Fund, recoveries, distributions, and fees, please click here.