Status of Customer Fund
Pie Chart: Status of Customer Funds

Recoveries & Settlement Agreements Reported as of August 12, 2015:


$10.895 Billion

All amounts approximate

Sixth Pro Rata Distribution

On April 15, 2015, the SIPA Trustee filed a motion in the United States Bankruptcy Court for the Southern District of New York seeking approval for an allocation of recoveries to the BLMIS Customer Fund and an authorization for a sixth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims. In the motion, the SIPA Trustee sought the release of $1.249 billion of $1.449 billion that was held in reserve under a September 2012 Bankruptcy Court order, with $904 million available for immediate distribution to customers with allowed claims. The reserve was required due to ongoing litigation of the “time-based damages” issue, in which claimants asserted that they were entitled to an inflation or interest adjustment on their claims. On February 20, 2015, the Second Circuit affirmed that claimants in the SIPA liquidation of BLMIS are not entitled to any interest or inflation adjustments on money deposited at BLMIS. An approval hearing that was originally scheduled for May 28, 2015 was adjourned and then was rescheduled for Wednesday, July 29, 2015.

On July 21, 2015, the SIPA Trustee filed a notice of adjournment of the July 29 hearing.

The hearing was adjourned because certain BLMIS claimants filed a petition with the Supreme Court of the United States seeking a writ of certiorari to review the decision by the United States Court of Appeals for the Second Circuit regarding “time-based damages.”

The hearing for approval of the sixth interim distribution motion will not be rescheduled until such time as the Supreme Court resolves the petition for certiorari and the time-based damages issue reaches a final, unappealable conclusion.

Fifth Pro Rata Interim Distribution (2.743%)

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 August 12, 2015, approximately $397.1 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. After the fifth pro rata interim distribution, 1,060 accounts with allowed claims remain partially satisfied and entitled to participate in future distributions.

Fourth Pro Rata Interim Distribution (3.180%)

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 August 12, 2015, approximately $460.9 million has been distributed to BLMIS accountholders 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 (4.721%):

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 August 12, 2015, approximately $685.4 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 (33.556%):

The second pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible BLMIS customers commenced September 19, 2012. To date, approximately $4.900 billion has been distributed to BLMIS accounts with allowed claims through the second pro rata interim distribution, representing approximately 33.556 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

First Pro Rata Interim Distribution (4.602%):

As of August 12, 2015, approximately $674.6 million has been returned to BLMIS customers with allowed claims via the first pro rata interim distribution, which commenced on October 5, 2011, representing approximately 4.602 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

Amount of SIPC advances reimbursed to SIPC on fully satisfied accounts - $125.3 Million

SIPC is authorized to administer funds to customers of failed brokerage firms as an advance against recovered assets. In this case, SIPC to date has advanced to the court-appointed SIPA Trustee approximately $825.7 million in funds to distribute to BLMIS customers with allowed claims.

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 BLMIS Customer Fund for advances paid on fully satisfied claims, leaving $700.4 million in SIPC advances outstanding.

One hundred percent of the SIPA Trustee's recoveries will be allocated to the BLMIS Customer Fund for distribution to BLMIS customers with allowed claims. The reimbursements to SIPC are for the cash advances to BLMIS customers with allowed claims, which are made when the BLMIS customer claim is first allowed.

Icon: More Information Distributions from Customer Fund through August 12, 2015
$7.244 Billion

Additional unresolved matters remain that require determination, including “time-based damages,” or payments based on the time elapsed while customer funds were deposited with BLMIS. All of these matters will be heard and determined by the courts and, until resolved, require reserves. In addition, 113 claims have been “deemed determined pending litigation” and the SIPA Trustee must establish sufficient reserves to ensure that he would be able to make all pro rata distributions to date to all potentially eligible claimants, whether or not their claims are allowed at the time of distribution.

Required reserve for deemed determined claims: Approximately $1.879 billion

Required 3-percent reserve ordered by Bankruptcy Court for issue of time-based damages: Approximately $1.449 billion

Other reserves, including reserve for deferred payments and unallocated funds: Approximately $86.6 million

Icon: More Information CUSTOMER FUND, including required reserves as of August 12, 2015
$3.415 Billion

Portions of recoveries and settlement agreements have not yet been collected, due to appeals, the timing of payments of certain settlement monies and other issues. Therefore, 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 12, 2015, approximately $236.7 million relating to settlement reserves and other matters must be held in reserve.

Icon: More Information Amount Unavailable Due to Appeals & Reserves as of August 12, 2015
$236.7 Million
Recoveries to Reported Fees Ratio
Bar Graph: Recoveries to Reported Fees Ratio (click to enlarge)