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Building the Customer Fund

Recoveries & Settlement
Agreements Reported
as of November 20, 2014:


$10.493 Billion

Pie Chart: Liquidation Proceedings
Status of Customer Fund
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On November 20, 2014, the United States Bankruptcy Court for the Southern District of New York approved a settlement between the SIPA Trustee and the defendants in Picard v. Edward Blumenfeld, et al. The settlement motion was filed with the United States Bankruptcy Court for the Southern District of New York on October 17, 2014. The agreement has an aggregate potential value of approximately $62 million for the BLMIS Customer Fund. The Blumenfeld defendants have agreed to make an immediate payment of $32.75 million to the BLMIS Customer Fund for the benefit of BLMIS customers with allowed claims. The Blumenfeld defendants have also agreed to transfer their customer claims in the Madoff SIPA liquidation, totaling approximately $29 million, to the SIPA Trustee. Since the customer claims are already entitled to the four interim pro rata distributions, plus the $500,000 SIPC advance, the BLMIS Customer Fund will immediately benefit by an additional $17.7 million, making the total current payment approximately $50.47 million. The SIPA Trustee could capture up to an additional $11.5 million from future pro rata distributions on the transferred claims for the benefit of BLMIS customers with allowed claims.

Icon: More Information NOVEMBER 20, 2014  Edward Blumenfeld, et al.  $50.4 Million

On November 18, 2014, the SIPA Trustee filed a motion in the United States Bankruptcy Court for the Southern District of New York seeking approval of a recovery agreement with Senator Fund SPC, a Cayman Islands incorporated investment fund invested exclusively with BLMIS. Under the terms of the agreement, the settlement will benefit the BLMIS Customer Fund by $95 million. The agreement with Senator represents 100 percent of the principal withdrawals by Senator from BLMIS. The United States Bankruptcy Court will hold a hearing for approval of the Senator settlement motion on Wednesday, December 17, 2014.

Icon: More Information NOVEMBER 18, 2014  Senator Fund SPC  $95 Million

On November 17, 2014, the SIPA Trustee filed a motion in the United States Bankruptcy Court for the Southern District of New York seeking approval of a recovery agreement with Herald Fund SPC and Primeo Fund, two feeder funds primarily invested in BLMIS. Under the terms of the agreement, the settlement will benefit the BLMIS Customer Fund by approximately $497 million. The Bankruptcy Court will hold a hearing for approval of the settlement motion on Wednesday, December 17, 2014.

Icon: More Information NOVEMBER 17, 2014  Herald Fund SPC and Primeo Fund  $497 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information OCTOBER 31, 2014  Additional Recoveries  $7.5 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information SEPTEMBER 30, 2014  Additional Recoveries  $3.5 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information AUGUST 31, 2014  Additional Recoveries  $1.9 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information JULY 31, 2014  Additional Recoveries  $12.5 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information JUNE 30, 2014  Additional Recoveries  $3.3 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information MAY 31, 2014  Additional Recoveries  $13 Million

On June 1, 2012, the United States District Court for the Southern District of New York approved a $162 million settlement agreement between the SIPA Trustee and Saul B. Katz, et al. The agreement represents a final settlement between the two parties and allows the BLMIS Customer Fund to recoup six years of fictitious profits. Under terms of the settlement, the Defendants’ allowed claims of approximately $178 million (BLMIS accounts in which the Defendants had deposited more money than they had withdrawn – their “net loser” accounts) will be unconditionally assigned to the SIPA Trustee until the $162 million settlement number is reached. Distributions made to the allowed claims assigned to the SIPA Trustee will reduce the amount owed by the Defendants and will be added to the Customer Fund. On September 28, 2012, the first and second pro rata interim distribution payments of approximately $67.3 million were made with respect to the allowed claims assigned to the SIPA Trustee and added to the Customer Fund. On March 29, 2013, the SIPA Trustee’s third distribution resulted in approximately $8.336 million added to the Customer Fund. On May 5, 2014, the SIPA Trustee’s fourth interim distribution commenced, resulting in approximately $5.615 million added to the Customer Fund. The remaining balance of the settlement payment is approximately $80.7 million.

Icon: More Information MAY 05, 2014  Saul Katz, et al.   $81.3 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information APRIL 30, 2014  Additional Recoveries  $3.7 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information MARCH 31, 2014  Additional Recoveries  $4.7 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information FEBRUARY 28, 2014  Additional Recoveries  $1.2 Million

On February 4, 2014, the United States Bankruptcy Court for the Southern District of New York approved two agreements totaling approximately $543 million for the benefit of BLMIS customers. The agreements settled avoidance claims asserted by the SIPA Trustee against JPMorgan for $325 million, as well as common law claims brought separately by the SIPA Trustee and in a class action lawsuit, which mirrored the claims developed by the SIPA Trustee’s legal team, for $218 million. Of the $325 million that JPMC will pay to the SIPA Trustee, $50 million will be given to the joint liquidators of the Fairfield Sentry Funds for distribution to the indirect investors in the Fairfield Sentry Funds, as part of the cooperative agreement reached in May 2011 to share a percentage of certain future recoveries. On March 25, 2014, the SIPA Trustee filed a motion for an order approving a fourth allocation of property to the Customer Fund and requesting approval to authorize a fourth interim distribution to BLMIS customers with allowed claims. In that filing, the SIPA Trustee sought approval from the United States Bankruptcy Court to allocate a net amount of $275 million from the JPMC settlement to the BLMIS Customer Fund. Bankruptcy Court approval for the fourth pro rata interim distribution was granted on April 18, 2014, following the April 17, 2014 hearing in the United States Bankruptcy Court, and the distribution commenced on May 5, 2014.

Icon: More Information FEBRUARY 04, 2014  JPMorgan Chase, et al.  $275 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information JANUARY 31, 2014  Additional Recoveries  $3.3 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information DECEMBER 31, 2013  Additional Recoveries  $6.6 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information NOVEMBER 30, 2013  Additional Recoveries  $776 Thousand

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information OCTOBER 31, 2013  Additional Recoveries  $4.8 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information SEPTEMBER 30, 2013  Additional Recoveries  $2 Million

On September 17, 2013, United States Bankruptcy Court for the Southern District of New York approved the $97.8 million settlement with the Maxam Absolute Return Fund L.P. and other related funds and entities, including Sandra L. Manzke and members of her family (collectively, the Maxam Defendants). The settlement represents the recovery of 100 percent of the Maxam Defendants’ withdrawals from BLMIS. In addition, the settlement benefits the indirect investors in Maxam. A claim totaling more than $276 million will be allowed, comprised of Maxam’s net equity claim of approximately $215 million plus approximately $61 million representing only half of the non-preference claim – a significant discount negotiated by the SIPA Trustee. In addition, the Manzke family trust will waive 50 percent of its right to any future distributions of funds received by Maxam as a result of its allowed customer claim.

Icon: More Information SEPTEMBER 17, 2013  Maxam Absolute Return Fund L.P.  $97.8 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information AUGUST 31, 2013  Additional Recoveries  $440 Thousand

On January 6, 2011, the United States Bankruptcy Court for the Southern District of New York approved a pre-litigation settlement between the SIPA Trustee and Union Bancaire Privée that resulted in the recovery of $470 million. Under the settlement, under certain conditions the Trustee was entitled to an additional $49 million from UBP or other entities. On August 8, 2013, UBP paid $30 million dollars and the non-UBP related entities paid $19 million.

Icon: More Information AUGUST 08, 2013  Additional Union Bancaire Privée (UBP)  $49 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information JULY 31, 2013  Additional Recoveries  $4.7 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information JUNE 30, 2013  Additional Recoveries  $1.6 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information MAY 31, 2013  Additional Recoveries  $2.9 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information APRIL 30, 2013  Additional Recoveries  $10.8 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information MARCH 31, 2013  Additional Recoveries  $5.7 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information FEBRUARY 28, 2013  Additional Recoveries  $2.4 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information DECEMBER 31, 2012  Additional Recoveries  $13.7 Million

On December 4, 2012, the United States District Court for the Southern District of New York approved a settlement agreement between the Securities Investor Protection Act (SIPA) Trustee and individuals, feeder funds and entities related to, among others, the Beacon Associates Management Corporation, Andover Associates Management Corporation and Ivy Asset Management. Under the terms of the settlement, the defendants made a $24 million payment to the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund, which represents a return of 100 percent of the defendants’ withdrawals from BLMIS during the six-year period prior to the commencement of the liquidation of BLMIS, plus additional recoveries for direct withdrawals and subsequent transfers made to various defendants. In addition, the defendants, who acted as feeder fund managers, advisors and/or consultants in one or more BLMIS feeder funds, will forego all fees otherwise due to them that would be paid out of distributions by the BLMIS estate.

Icon: More Information DECEMBER 04, 2012  Beacon & Andover  $24 Million

On May 9, 2011, a settlement agreement was announced with the Joint Liquidators of Fairfield Sentry Limited, Fairfield Sigma Limited and Fairfield Lambda Limited (collectively, the Fairfield Funds). Terms of the settlement include an immediate and permanent reduction – of $730 million – in the total amount of claims against the BLMIS Customer Fund by the Fairfield Funds, which would effectively increase future payments to customers with allowed claims. In addition, the settlement agreement aligned the interests of the SIPA Trustee and his counsel with the Joint Liquidators of Fairfield Sentry, strengthening both parties’ abilities to pursue and recover additional claims against the owners and management of the Fairfield Funds, as well as hundreds of subsequent transferees of customer property. The Joint Liquidators also agreed to make a $70 million payment to the SIPA Trustee with an initial payment of $24 million which has been paid by an $8 million offset of funds owed to the Fairfield Joint Liquidators and a $16 million cash payment by the Liquidators to the BLMIS Customer Fund. The remaining $46 million was paid to the SIPA Trustee on November 28, 2012. The United States Bankruptcy Court for the Southern District of New York approved this settlement agreement on June 7, 2011.

Icon: More Information NOVEMBER 28, 2012  Additional Fairfield Fund  $46 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information SEPTEMBER 30, 2012  Additional Recoveries  $19.2 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information JULY 31, 2012  Additional Recoveries  $2.9 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information JUNE 30, 2012  Additional Recoveries  $11.5 Million

On May 15, 2012, the United States Bankruptcy Court for the Southern District of New York approved a settlement agreement between the SIPA Trustee and Trotanoy Investment Company, Ltd. (Trotanoy), a Bailiwick of Guernsey limited liability company. The settlement with Trotanoy resulted in a $28.96 million cash settlement payment to the Customer Fund, representing a return of 100 percent of Trotanoy’s withdrawals during the 90-day preference period.

Icon: More Information MAY 15, 2012  Trotanoy Investment Company, Ltd.  $28.96 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information MARCH 31, 2012  Additional Recoveries  $36 Million

On December 21, 2011, a $326 million settlement with the United States of America, on behalf of the Internal Revenue Service, was approved by the United States Bankruptcy Court for the Southern District of New York. The SIPA Trustee determined that BLMIS falsely debited the accounts of 145 foreign account holders for alleged U.S. federal income tax withholding and paid to the IRS amounts withheld related to alleged dividends. Because no securities were purchased and thus no dividends were actually ever received by BLMIS, no amounts should have been withheld and transferred to the IRS. After receipt of the settlement payment, the specific accounts were credited for the amounts transferred from 2002 – 2008 and, where appropriate, a catch up pro rata interim distribution of 4.602 percent for the credited amount has been made. On March 25, 2014, the SIPA Trustee filed a motion for an order approving a fourth allocation of property to the Customer Fund and requesting approval to authorize a fourth interim distribution to BLMIS customers with allowed claims. In that filing, the SIPA Trustee indicated that he has removed the $103 million in reserve that was set aside since December 21, 2011, when the IRS settlement became final. The IRS settlement authorized the SIPA Trustee to release the reserve two years and sixty days after the order approving the settlement agreement became final. The fourth pro rata interim distribution was approved by the Court and commenced on May 5, 2014.

Icon: More Information DECEMBER 21, 2011  IRS  $326 Million

On October 4, 2011, the United States Bankruptcy Court for the Southern District of New York approved a settlement with Mount Capital Fund, a BLMIS feeder fund in liquidation in the British Virgin Islands, which returned $43.5 million to the BLMIS Customer Fund.

Icon: More Information OCTOBER 04, 2011  Mount Capital  $43.5 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information SEPTEMBER 30, 2011  Additional Recoveries  $51.1 Million

On July 28, 2011, the SIPA Trustee announced a settlement with Tremont Group Holdings Inc. and related entities under the terms of which the defendants will deliver cash payments into escrow totaling $1.025 billion, which will ultimately be placed into the Customer Fund and distributed, pro rata, to BLMIS customers with allowed claims. On September 22, 2011, the agreement was approved by the United States Bankruptcy Court for the Southern District of New York, but was appealed by third-party appellants. On June 27, 2012, the Honorable Judge Daniels of the United States District Court for the Southern District of New York granted the SIPA Trustee’s motion to dismiss the appeal. On July 26, 2012, a notice of appeal of the District Court decision was filed by the third-party appellants. The appeal was dismissed by the United States Court of Appeals for the Second Circuit on October 25, 2012. Under the settlement agreement, the $1.025 billion recovered for the BLMIS Customer Fund and the Tremont Group and related entities funds’ first and second pro rata interim distribution payments and SIPC advances were held in escrow for 90 days from the closing date of November 6, 2012. On February 8, 2013, the $1.025 billion was released to the SIPA Trustee for the Customer Fund. The four Tremont Fund claims that were previously “deemed determined” were allowed and the SIPC advances, first and second pro rata interim distributions were paid to the Tremont entities.

Icon: More Information SEPTEMBER 22, 2011  Tremont Group  $1.025 Billion

On May 9, 2011, a settlement agreement was announced with the Joint Liquidators of Fairfield Sentry Limited, Fairfield Sigma Limited and Fairfield Lambda Limited (collectively, the Fairfield Funds). Terms of the settlement include an immediate and permanent reduction – of $730 million – in the total amount of claims against the BLMIS Customer Fund by the Fairfield Funds, which would effectively increase future payments to customers with allowed claims. In addition, the settlement agreement aligned the interests of the SIPA Trustee and his counsel with the Joint Liquidators of Fairfield Sentry, strengthening both parties’ abilities to pursue and recover additional claims against the owners and management of the Fairfield Funds, as well as hundreds of subsequent transferees of customer property. The Joint Liquidators also agreed to make a $70 million payment to the SIPA Trustee with an initial payment of $24 million which has been paid by an $8 million offset of funds owed to the Fairfield Joint Liquidators and a $16 million cash payment by the Liquidators to the BLMIS Customer Fund. The United States Bankruptcy Court for the Southern District of New York approved this settlement agreement on June 7, 2011.

Icon: More Information JUNE 07, 2011  Fairfield Funds  $16 Million

On May 18, 2011, a settlement agreement was announced with Greenwich Sentry L.P. and Greenwich Sentry Partners, L.P. (combined, the Greenwich Funds), domestic BLMIS feeder funds operated by the Fairfield Greenwich Group (FGG) that were 100 percent invested in BLMIS. Terms of the settlement, which was structured very similarly to the settlement with the Fairfield Funds, included a reduction in the Greenwich Fund customer claims that will ultimately benefit BLMIS customers with approved claims. Under the agreement, the Greenwich Funds also agreed to assign all of their claims against FGG management companies, officers and partners to the Trustee and to the entry of judgment for the full amount of the Trustee’s claims, approximately $212 million. The settlement was approved on June 21, 2011 by the United States Bankruptcy Court for the Southern District of New York. On February 24, 2012, both the Greenwich Sentry and Greenwich Sentry Partners Chapter 11 Reorganization Plans and the settlement agreement became effective.

Icon: More Information MAY 18, 2011  Greenwich Funds  $212 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information MARCH 31, 2011  Additional Recoveries  $390.8 Million

On March 10, 2011, the United States Bankruptcy Court for the Southern District of New York approved a settlement between the SIPA Trustee and Hadassah in the amount of $45 million. On or about March 28, 2011, Hadassah transferred $45 million to the SIPA Trustee.

Icon: More Information MARCH 10, 2011  Hadassah  $45 Million

On January 13, 2011, the United States Bankruptcy Court for the Southern District of New York approved the SIPA Trustee’s $5 billion settlement with the estate of Jeffry Picower. This decision was appealed to the United States District Court for the Southern District of New York, which affirmed the decision of the Bankruptcy Court on March 26, 2012. Notices of appeal on the District Court’s order to the United States Court of Appeals for the Second Circuit were filed on April 24, 2012.

On July 16, 2012, the deadline for further appeals of the approximately $7.2 billion Picower forfeiture to the United States Government expired, making the forfeiture order final. Under the settlement agreement, the $5 billion settlement payment was then released to the SIPA Trustee.

 

Icon: More Information JANUARY 13, 2011  Estate of Jeffry Picower  $5 Billion

On January 6, 2011, the United States Bankruptcy Court for the Southern District of New York approved a pre-litigation settlement between the SIPA Trustee and Union Bancaire Privée that resulted in the recovery of $470 million. Under the settlement, under certain conditions the Trustee was entitled to an additional $49 million from UBP or other entities. On August 8, 2013, UBP paid $30 million dollars and the non-UBP related entities paid $19 million.

Icon: More Information JANUARY 06, 2011  Union Bancaire Privée (UBP)  $470 Million

On December 21, 2010, the United States Bankruptcy Court for the Southern District of New York approved a pre-litigation settlement between the SIPA Trustee and Carl Shapiro, Robert Jaffe, and related entities (the “Shapiros”) in the amount of $550 million. On or about December 23, 2010, the Shapiros transferred $550 million to the SIPA Trustee. As part of the agreement, the Shapiros also forfeit $75 million to the U.S. government.

Icon: More Information DECEMBER 21, 2010  Carl J. Shapiro, et al.  $550 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information SEPTEMBER 30, 2010  Additional Recoveries  $17.9 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information FEBRUARY 28, 2010  Additional Recoveries  $5.5 Million

On February 18, 2010, the United States Bankruptcy Court for the Southern District of New York approved a pre-litigation settlement between the SIPA Trustee and the estate of Norman F. Levy. This settlement resulted in the return of $220 million (the Norman Levy Settlement). Certain customers moved to set aside the Court’s order approving the Norman Levy settlement. The Bankruptcy Court denied the motion, and the claimants filed an appeal in United States District Court on April 11, 2011. On February 16, 2012, the District Court upheld the Bankruptcy Court’s earlier ruling approving the SIPA Trustee's settlement with the Levy family. The District Court’s ruling was appealed to the United States Court of Appeals for the Second Circuit, which affirmed the judgment of the District Court. On March 21, 2013, the period to challenge the Circuit Court’s ruling expired and the settlement became final, and unappealable. The $220 million is now included in the Customer Fund and the SIPA Trustee has requested its inclusion in the fourth interim distribution to BLMIS customers with allowed claims. The fourth pro rata interim distribution was approved by the Court and commenced on May 5, 2014. 

Icon: More Information FEBRUARY 18, 2010  Norman F. Levy, et al.  $220 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information OCTOBER 31, 2009  Additional Recoveries  $23.9 Million

On June 16, 2009, the United States Bankruptcy Court for the Southern District of New York approved a pre-litigation settlement between the SIPA Trustee and Optimal Strategic U.S. Equity Ltd. and Optimal Arbitrage Ltd. This settlement resulted in the return of over $235 million.

Icon: More Information JUNE 16, 2009  Optimal  $235.4 Million

Litigation recoveries and other recoveries may include, but are not limited to: Recovery agreements of less than $20 million which are not subject to public disclosure; transfers from debtor’s estate (securities, bank account, interest and dividends, closeout proceeds); sale of debtor’s assets (sports tickets, bank debt participation, market making business); administrative subtenant rent revenue; refunds (BLM Air Charter, deposits, dues/subscriptions, vendors, insurance/workers comp, political contributions); recoveries (donation settlements, vendor preferences, employees, taxing authorities, class actions, NASDAQ, NYSE, transaction fees); earnings on SIPA Trustee's investments; interest on SIPA Trustee's savings accounts.

Icon: More Information MAY 31, 2009  Initial Recoveries  $647.8 Million