Status of Customer Fund
Pie Chart: Status of Customer Funds

Recoveries & Settlement Agreements Reported as of July 23, 2014:


$9.825 Billion

All amounts approximate

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 July 23, 2014, approximately $352.1 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. After the fourth pro rata interim distribution, 1,061 accounts with allowed claims remain partially satisfied and entitled to participate in future distributions.

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 July 23, 2014, approximately $523.9 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 $3.752 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 July 23, 2014, approximately $517 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 - $114.1 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 $813.7 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 fourth pro rata interim distribution in the BLMIS liquidation proceeding, SIPC received $114.1 million in reimbursement from the BLMIS Customer Fund for advances paid on fully satisfied claims, leaving $699.6 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 July 23, 2014
$5.259 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, 151 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 $2.865 billion

Required 3-percent reserve ordered by Bankruptcy Court for issue of time-based damages: Approximately $1.445 billion

Other reserves, including reserve for deferred payments and unallocated funds: Approximately $19.9 million

Icon: More Information CUSTOMER FUND, including required reserves as of July 23, 2014
$4.330 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 July 23, 2014, 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 July 23, 2014
$236.7 Million
Recoveries to Reported Fees Ratio
Bar Graph: Recoveries to Reported Fees Ratio (click to enlarge)