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September 06, 2017
Press Release: Madoff Trustee Reaches Recovery Agreement with Thema International

MADOFF TRUSTEE REACHES RECOVERY AGREEMENT
WITH THEMA INTERNATIONAL

SETTLEMENT DELIVERS IMMEDIATE BENEFIT TO CUSTOMER FUND OF APPROXIMATELY $687 MILLION

Madoff Trustee Has Recovered or Reached Agreements to Recover More Than $12.7 Billion To Date in BLMIS Liquidation; More Than $10 Billion Distributed to Madoff Victims

NEW YORK, NEW YORK and WASHINGTON, DC – September 6, 2017 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a motion today in the United States Bankruptcy Court for the Southern District of New York, seeking approval of a settlement agreement with Thema International Fund plc (“Thema International”). An approval hearing for the agreement has been set for October 25, 2017 at 10 a.m.

Thema International is an Irish fund, which invested substantially all of its assets with BLMIS. The $687 million payment represents 100 percent of the transfers from BLMIS to Thema International during the six years prior to the collapse of BLMIS plus 19.26 percent of the withdrawals beyond the six year period. The agreement, reached through mediation, represents a good faith, complete settlement of all disputes between the SIPA Trustee and Thema International. The SIPA Trustee will allow the net equity claim of Thema International upon receipt of the payment.

“The Thema International settlement is the latest in a series of highly successful negotiations and mediations,” said BakerHostetler partner Oren J. Warshavsky. “The Trustee settled with the Lagoon and Thema Funds earlier this year. Together, the three settlements deliver an aggregate benefit of more than $1 billion to the BLMIS Customer Fund.”

“The Thema International settlement is another outstanding achievement by the SIPA Trustee and his team, and will be part of a significant, additional distribution by year-end to both direct and indirect investors in BLMIS,” said Stephen P. Harbeck, President and Chief Executive Officer of SIPC. “This excellent result will bring a virtually immediate benefit to the customers of BLMIS. As with prior funds collected by the SIPA Trustee, every cent will go directly to victims. All expenses of this massive case are paid by SIPC.”

The SIPA Trustee’s motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (SMB) / Adv. Pro. No. 09-01364 (SMB). The motion – as well as further information on recoveries to date, other legal proceedings, further settlements, and general information – can also be found on the SIPA Trustee’s website: www.madofftrustee.com.

Messrs. Harbeck and Picard, and David J. Sheehan, Chief Counsel to the SIPA Trustee, would like to thank the Securities Investor Protection Corporation’s Josephine Wang and Kevin Bell, as well as BakerHostetler attorneys Oren J. Warshavsky, Geoffrey A. North, Gonzalo S. Zeballos, Robertson D. Beckerlegge, Michelle R. Usitalo, Peter B. Shapiro, Eric B. Hiatt, Carrie A. Longstaff, Tatiana Markel, Dominic A. Gentile, and Anat Maytal, who assisted with the work on the matter and settlement.

Press Release: Madoff Trustee Reaches Recovery Agreement with Thema International

July 19, 2017
Statement Regarding Twenty-Fourth Fee Application

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Heather Wlodek, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel:

On Wednesday, July 19, 2017, the SIPA Trustee and his Counsel at BakerHostetler filed their 24th Interim Fee Application in the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from December 1, 2016 through March 31, 2017.

• The Application seeks approval of fees, representing approximately 81,922 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $435 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month Compensation Period of approximately $3,966,540.70. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,788,716.00 for the four-month period, as well as expenses in the amount of $366,446.51.

• The fees requested are reasonable based on the customary compensation charged by comparably skilled practitioners in Chapter 11 matters as well as comparable bankruptcy and non-bankruptcy cases in the competitive national legal market.

• After applying the public interest discount, the total fees requested for the period were $35,698,866.30 (of which $32,128,979.67 is to be paid currently and $3,569,886.63 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 20,480 hours worked per month on the international and domestic investigations, negotiations and litigation resulting from the largest financial fraud of its kind in U.S. history. In addition, $345,286.87 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort.

As noted in the Fee Application:

• During the Compensation Period of December 1, 2016 through March 31, 2017, without the need for protracted litigation, the SIPA Trustee settled 34 cases for $310,802,263.63. The SIPA Trustee entered into settlements subsequent to the Compensation Period that will bring an additional $409.313 million into the Customer Fund.

• As of the end of the Compensation Period (March 31, 2017), the SIPA Trustee dismissed 266 Hardship Program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

As of June 30, 2017, the SIPA Trustee has recovered or entered into agreements to recover approximately $12.021 billion, representing more than 68 percent of the estimated $17.5 billion in principal lost in the Ponzi scheme by BLMIS customers who filed claims. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by 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. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

To date, the SIPA Trustee has distributed approximately $9.725 billion to BLMIS customers with allowed claims, which includes a total of $8.885 billion in distributions from the Customer Fund and $839.96 million in funds committed to be advanced by SIPC.

The first pro rata interim distribution commenced on October 5, 2011, and to date equals approximately $685.5 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $4.980 billon. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $696.5 million. The fourth pro rata interim distribution commenced on May 5, 2014 and the SIPA Trustee has distributed approximately $468.4 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $403.5 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee has distributed approximately $1.209 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $190.3 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $251.6 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $839.96 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. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $181.2 million in reimbursement.

The Bankruptcy Court hearing for approval of the 24th Fee Application is scheduled for Wednesday, August 30, 2017 at 10 a.m.

The BakerHostetler attorneys who worked on behalf of the SIPA Trustee filing this Fee Application include David J. Sheehan, Seanna R. Brown and Heather R. Wlodek.

The filing is available on the Bankruptcy Court’s website: www.nysb.uscourts.gov; Case No. 08-01789. The Fee Application as well as additional information on recoveries, settlements and court filings can be found on the SIPA Trustee’s website:www.madofftrustee.com.

Statement Regarding Twenty-Fourth Fee Application

June 27, 2017
Press Release: Madoff Trustee Reaches Recovery Agreements with Lagoon and Thema Funds of Approximately $370 Million

MADOFF TRUSTEE REACHES RECOVERY AGREEMENTS
WITH OFFSHORE FUNDS IN BVI 

SETTLEMENTS WITH LAGOON AND THEMA FUNDS DELIVER IMMEDIATE BENEFIT TO CUSTOMER FUND OF APPROXIMATELY $370 MILLION

 Approximately $11.6 Billion Recovered To Date in BLMIS Liquidation; Approximately $9 Billion Distributed to Madoff Victims

NEW YORK, NEW YORK and WASHINGTON, DC – June 27, 2017 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed two motions today in the United States Bankruptcy Court for the Southern District of New York. The first motion seeks approval of a settlement agreement with Lagoon Investment Limited (“Lagoon”), Hermes International Fund Limited (“Hermes”), and Lagoon Investment Trust (“Lagoon Trust”; together, the “Lagoon Defendants”). The second motion seeks approval of a settlement agreement with Thema Fund Limited (“Thema Fund”) and Thema Wise Investments Ltd. (“Thema Wise”; together, the “Thema Defendants”). An approval hearing for both agreements has been set for July 26, 2017 at 10 a.m.

Lagoon is a BVI corporation that was the BLMIS account holder through which Hermes and Lagoon Trust invested with BLMIS. The Thema funds are based in BVI. Under the terms of the agreements with the Lagoon and Thema Defendants, Lagoon will pay approximately $240 million to the BLMIS Customer Fund and Thema Wise will pay approximately $130 million. Both payments represent a recovery of 100 percent of the transfers from BLMIS to the Lagoon and Thema Defendants during the six years prior to the collapse of BLMIS.

The SIPA Trustee will allow the net equity claims of the Lagoon and Thema Defendants upon receipt of the payments.

“Settlements like these are highly beneficial to Madoff’s victims,” said BakerHostetler partner Oren J. Warshavsky. “Not only do we resolve all claims, but we also avoid litigation, which can delay additional restitutions to Madoff’s victims. Together, the settlements represent slightly more than a 1 percent increase in recovery for future distributions to customers with allowed claims.”

Stephen P. Harbeck, President and Chief Executive Officer of SIPC, stated, “Recovering funds from offshore defendants is always challenging. The settlements announced today represent significant accomplishments by the SIPA Trustee and his legal team. We look forward to additional distributions to the victims of the fraud in the near future.”

The SIPA Trustee’s motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (SMB) / Adv. Pro. No. 09-01364 (SMB). The motion – as well as further information on recoveries to date, other legal proceedings, further settlements, and general information – can also be found on the SIPA Trustee’s website: www.madofftrustee.com.

Messrs. Harbeck and Picard, and David J. Sheehan, Chief Counsel to the SIPA Trustee, would like to thank the Securities Investor Protection Corporation’s Josephine Wang and Kevin Bell, as well as BakerHostetler attorneys Oren J. Warshavsky, Geoffrey A. North, Gonzalo S. Zeballos, Robertson D. Beckerlegge, Carrie A. Longstaff, Eric B. Hiatt, Peter B. Shapiro, Michelle R. Usitalo, Tatiana Markel, Dominic A. Gentile and Anat Maytal, who assisted with the work on these settlements.

Press Release: Madoff Trustee Reaches Recovery Agreements with Lagoon and Thema Funds of Approximately $370 Million

June 27, 2017
Press Release: Madoff Trustee Announces Recovery of More Than $23 Million in Assets from Settlements with the Estates of Madoff Sons

Joint press release from the offices of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), and Stephen P. Harbeck, President and Chief Executive Officer of the Securities Investor Protection Corporation (SIPC)

MADOFF TRUSTEE ANNOUNCES RECOVERY OF MORE THAN $23 MILLION
IN ASSETS FROM SETTLEMENT WITH THE ESTATES OF MADOFF SONS


NEW YORK, NEW YORK and WASHINGTON, DC
– June 27, 2017 – Irving H. Picard, Securities Investor Protection Act Trustee (the “SIPA Trustee”) for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a motion yesterday in the United States Bankruptcy Court for the Southern District of New York seeking approval of a settlement between the SIPA Trustee and the United States Attorney’s Office for the Southern District of New York (the “Government”), and the Estate of Mark D. Madoff, the Estate of Andrew H. Madoff (collectively, the “Madoff Brothers’ Estates”), and Mark Madoff’s widow, Stephanie Mack (a/k/a Stephanie Madoff; “Mack”) (collectively, the “Parties”). The Bankruptcy Court will hold a hearing for approval of the settlement motion on July 26, 2017 at 10:00 a.m.

Under the terms of the agreement, the SIPA Trustee and the Government will receive more than $23 million in cash and other assets from the Madoff Brothers’ Estates and Mack. The total recovery will be shared equally between the SIPA Trustee and the Government. All proceeds of the settlement received by the SIPA Trustee will benefit the Customer Fund for ultimate distribution to BLMIS customers with allowed claims.

“This settlement resolves exceptionally complex litigation with the Madoff Brothers’ Estates, in a way most favorable to the customers of BLMIS. It ends years of litigation and makes a substantial contribution to the Customer Fund,” said Stephen P. Harbeck, President and Chief Executive Officer of the Securities Investor Protection Corporation (SIPC). “As with other settlements throughout this proceeding, the Trustee will be in a position to make a distribution as promptly as practicable.”

“This agreement puts the interests of Madoff’s victims first, by settling the prolonged dispute without additional expense or delay, and it allows the SIPA Trustee to bring the maximum amount of money back to the Customer Fund for distribution to allowed claimants,” said David J. Sheehan, Chief Counsel to the SIPA Trustee.

This settlement agreement resolves all claims brought by the SIPA Trustee against the Madoff Brothers and their respective Estates as well as certain business entities that they owned and controlled. In addition to surrendering these assets, the Madoff Brothers’ Estates relinquished their claims to more than $100 million in purported deferred compensation, other benefits from BLMIS, and funds purportedly held in customer accounts at the time of BLMIS’s collapse.

To date, the SIPA Trustee has recovered or reached agreements to recover approximately $11.616 billion since his appointment in December 2008. These recoveries exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollar value and percentage of stolen funds recovered. The SIPA Trustee has distributed approximately $9.725 billion – which includes more than $839.9 million in committed advances from the Securities Investor Protection Corporation (SIPC) to BLMIS account holders with allowed claims. In aggregate, 60.098 percent of each customer’s allowed claim amount has been paid, unless that claim has been fully satisfied.

Ultimately, 100 percent of the SIPA Trustee’s recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims. None of the money recovered is used to pay administrative costs. All Trustee, legal and accounting fees, as well as administrative expenses, are paid by SIPC.

More information on overall recoveries to date and the ongoing liquidation can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Messrs. Picard and Sheehan would like to express their appreciation to the United States Attorney’s Office for their collaboration in bringing this matter to closure, as well as thank Lauren J. Resnick, Jimmy Fokas, Patrick T. Campbell, and Melissa M. Carvalho of BakerHostetler, who worked on the litigation. Messrs. Picard and Sheehan also acknowledge the work of Windels Marx Lane & Mittendorf attorneys Howard L. Simon, Kim M. Longo, and John T. Tepedino.

Press Release: Madoff Trustee Announces Recovery of More Than $23 Million in Assets from Settlements with the Estates of Madoff Sons

March 20, 2017
Statement Regarding Twenty-Third Fee Application

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Heather Wlodek, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel:

On Monday, March 20, 2017, the SIPA Trustee and his Counsel at BakerHostetler filed their 23rd Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from August 1, 2016 through November 30, 2016.

• The Application seeks approval of fees, representing approximately 85,486 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $414 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month compensation period of approximately $3,932,256.60. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,948,106.50 for the four-month period, as well as expenses in the amount of $313,327.41.

• The fees requested are reasonable based on the customary compensation charged by comparably skilled practitioners in Chapter 11 matters as well as comparable bankruptcy and non-bankruptcy cases in the competitive national legal market.

• After applying the public interest discount, the total fees requested for the period were $35,390,309.40 (of which $31,851,278.47 is to be paid currently and $3,539,030.93 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 21,372 hours worked per month on the international and domestic investigations, negotiations and litigation resulting from the largest financial fraud of its kind in U.S. history. In addition, $236,780.39 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort.

As noted in the fee application:

• During the compensation period of August 1, 2016 through November 30, 2016, without the need for protracted litigation, the SIPA Trustee settled 42 cases for $64,439,679.02.

• As of the end of the compensation period (November 30, 2016), the SIPA Trustee dismissed 265 Hardship Program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

As of February 28, 2017, the SIPA Trustee has recovered or entered into agreements to recover approximately $11.590 billion, representing more than 66 percent of the estimated $17.5 billion in principal lost in the Ponzi scheme by BLMIS customers who filed claims. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by 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. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

To date, the SIPA Trustee has distributed approximately $9.725 billion to BLMIS customers with allowed claims, which includes a total of $8.885 billion in distributions from the Customer Fund and $839.96 million in funds committed to be advanced by SIPC.

The first pro rata interim distribution commenced on October 5, 2011, and to date equals approximately $685.5 million. A second pro rata interim distribution commenced on September 19, 2012, and to date equals approximately $4.980 billon. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $696.5 million. The fourth pro rata interim distribution commenced on May 5, 2014 and the SIPA Trustee has distributed approximately $468.4 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $403.5 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee has distributed approximately $1.209 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $190.3 billion. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $251.6 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed approximately $840 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. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $181.2 million in reimbursement.

The Bankruptcy Court hearing for approval of the 23rd Fee Application has been scheduled for Wednesday, April 26, 2017 at 10 a.m.
The BakerHostetler attorneys who worked on behalf of the SIPA Trustee filing this Fee Application include David J. Sheehan, Seanna Brown and Heather Wlodek.

The filing is available on the Bankruptcy Court’s website: www.nysb.uscourts.gov; Case No. 08-01789. The Fee Application as well as additional information on recoveries, settlements and court filings can be found on the SIPA Trustee’s website:www.madofftrustee.com.

Statement Regarding Twenty-Third Fee Application

February 02, 2017
Eighth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Total Approximately $252 Million

EIGHTH PRO RATA INTERIM DISTRIBUTION OF RECOVERED FUNDS
TO MADOFF CLAIMS HOLDERS COMMENCES;
TOTALS APPROXIMATELY $252 MILLION

Aggregate Distributions Total Approximately $9.72 Billion


NEW YORK, NEW YORK and WASHINGTON, DC – February 2, 2017 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), announced that the eighth pro rata interim distribution from the Customer Fund to eligible BLMIS customers commenced today, Thursday, February 2, 2017.

The SIPA Trustee is distributing approximately $252 million on a pro rata basis to BLMIS account holders with allowed claims, bringing the aggregate amount distributed to eligible claimants to approximately $9.72 billion, which includes more than $839.9 million in committed advances from the Securities Investor Protection Corporation (SIPC). The eighth distribution represents 1.729 percent of each claim dollar and will be paid on claims relating to 953 BLMIS accounts to record holders of allowed claims as of January 12, 2017. When combined with the prior seven distributions, in aggregate, 60.098 percent of each customer’s allowed claim amount will be paid, unless that claim has been fully satisfied.

“This distribution continues the process of returning assets to the Madoff victims as promptly as possible. The Trustee and his team continue to produce extraordinary results,” said SIPC President and CEO Stephen P. Harbeck. “I would stress that all of the funds recovered by the Trustee go directly to the victims. All of the administrative costs and professional fees in this case are paid by SIPC.”

The eighth pro rata interim distribution was reached as a result of settlements and recoveries achieved by the SIPA Trustee, his Chief Counsel David J. Sheehan, and their legal teams during the second half of 2016. The most notable was the universal recovery agreement of approximately $269 million that ended litigation against the Estate of Stanley Chais and other Chais-related defendants.

The average payment for an allowed claim issued in the eighth distribution will total $263,998.40. The smallest payment totals $271.80 and the largest payment is $42,320,519.04. In addition, SIPC will be reimbursed for its advances to accounts that the eighth interim distribution has fully satisfied.

Currently, the SIPA Trustee has allowed claims related to 2,257 BLMIS accounts. Of these accounts, 1,335 accounts will now be fully satisfied following the eighth interim distribution. All allowed claims up to $1,253,018.77 will be fully satisfied after the distribution.

As of December 31, 2016, the SIPA Trustee has recovered or reached agreements to recover approximately $11.564 billion since his appointment in December 2008. These recoveries exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollar value and percentage of stolen funds recovered.

Ultimately, 100 percent of the SIPA Trustee’s recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims. None of the money recovered is used to pay administrative costs. All trustee, legal and accounting fees, as well as administrative expenses, are paid by SIPC.

Prior distributions as of February 2, 2017 are as follows:

• The first pro rata interim distribution, which commenced on October 5, 2011, has distributed approximately $685.5 million, representing 4.602 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The second pro rata interim distribution, which commenced on September 19, 2012, has distributed approximately $4.98 billion, representing 33.556 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The third pro rata interim distribution, which commenced on March 29, 2013, has distributed approximately $696.5 million, representing 4.721 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The fourth pro rata interim distribution, which commenced on May 5, 2014, has distributed approximately $468.4 million, representing 3.180 percent of each individual account, unless the claim is fully satisfied.

• The fifth pro rata interim distribution, which commenced on February 6, 2015, has distributed approximately $403.5 million, representing 2.743 percent of each individual account, unless the claim is fully satisfied.

• The sixth pro rata interim distribution, which commenced on December 4, 2015, has distributed approximately $1.209 billion, representing 8.262 percent of each individual account, unless the claim is fully satisfied.

• The seventh pro rata interim distribution, which commenced on June 30, 2016, has distributed approximately $190.3 million, representing 1.305 percent of each individual account, unless the claim is fully satisfied.

There are 57 deemed determined claims still subject to litigation. Once litigation is resolved or settled, these claims may be allowed. Any allowed claim would become eligible for all pro rata distributions to date and could add billions of dollars to the total value of allowed claims. For this potential scenario, the SIPA Trustee has to date reserved approximately $1.988 billion.

More information on overall recoveries to date and the ongoing liquidation can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Messrs. Harbeck, Picard and Sheehan would like to thank BakerHostetler attorneys Seanna Brown and Heather Wlodek, who worked on the eighth pro rata interim distribution and its related filings, as well as BakerHostetler, Windels Marx and all of the attorneys and professionals whose work has led to the distribution. They would also like to thank Vineet Sehgal and his colleagues at AlixPartners, as well as Josephine Wang, Kevin Bell and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative.

Eighth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Total Approximately $252 Million

January 12, 2017
Statement Regarding Bankruptcy Court Approval of Eighth Interim Pro Rata Distribution

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Amanda Remus, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel:

The United States Bankruptcy Court for the Southern District of New York today approved the SIPA Trustee’s request for an allocation of approximately $342 million in recoveries to the BLMIS Customer Fund and has authorized the SIPA Trustee to proceed with the eighth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As previously announced, the SIPA Trustee, with today’s court approval, will allocate approximately $342 million to the BLMIS Customer Fund, with approximately $252 million available for immediate distribution to customers with allowed claims and approximately $90.7 million held in reserve for claims that are deemed determined pending the resolution of litigation, as well as other issues. This eighth interim distribution, when combined with the prior seven distributions, will equal 60.098 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The amount distributed to eligible BLMIS customers will total approximately $9.72 billion, which includes more than $839.6 million in advances committed by the Securities Investor Protection Corporation (SIPC).

The distribution is expected to commence by mid-February. Record holders of allowed claims as of January 12, 2017 will be eligible to receive payments from the eighth interim distribution.

The supplemental Eighth Customer Fund Allocation and Distribution Motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (SMB). It can also be found on the SIPA Trustee’s website along with more information on the BLMIS liquidation at www.madofftrustee.com.

Link to the December 14, 2016 Press Release:
http://www.madofftrustee.com/document/news/000729-2016-december-14-eighth-distribution-press-release.pdf

Statement Regarding Bankruptcy Court Approval of Eighth Interim Pro Rata Distribution

December 14, 2016
Madoff Trustee Requests Allocation of $342 Million to Customer Fund and Court Approval to Immediately Distribute Approximately $252 Million to BLMIS Customers with Allowed Claims

MADOFF TRUSTEE REQUESTS ALLOCATION OF
$342 MILLION TO CUSTOMER FUND
AND COURT APPROVAL TO IMMEDIATELY DISTRIBUTE
APPROXIMATELY $252 MILLION
TO BLMIS CUSTOMERS WITH ALLOWED CLAIMS

Eighth Pro Rata Interim Distribution Will Bring
Aggregate Customer Payout in Global Madoff Liquidation to More Than $9.72 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – Wednesday, December 14, 2016 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a motion today 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 an eighth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims. A hearing has been scheduled for Thursday, January 12, 2017 at 10 a.m. EST.

The eighth pro rata interim distribution approval filing arrives on the eve of the eighth anniversary of the District Court’s 2008 appointments of Mr. Picard and BakerHostetler as SIPA Trustee and Counsel, respectively, for the Madoff liquidation. Their appointments followed the revelation of Madoff’s decades-long fraud in which more than $17.5 billion was stolen from Madoff’s customers in the largest Ponzi scheme in history.

Plans for the eighth pro rata interim distribution are the result of settlements and recoveries achieved by the SIPA Trustee, his Chief Counsel David J. Sheehan, and their legal teams during the second half of 2016. The most notable was the universal recovery agreement of approximately $277 million – made in cooperation with the California Attorney General – that ended litigation against the Estate of Stanley Chais and other Chais-related defendants. The BLMIS Customer Fund benefited by approximately $234 million after court approval of the settlement on November 19, 2016. With this and other additional settlement outcomes, the SIPA Trustee stands ready to make an eighth pro rata interim distribution to allowed claimants of 1.729 percent on each allowed claim.

If the distribution motion is approved on January 12, 2017, the SIPA Trustee will allocate a total of approximately $342 million to the BLMIS Customer Fund, with approximately $252 million available for immediate distribution to customers with allowed claims and approximately $90.7 million held in reserve for claims that are deemed determined pending the resolution of litigation, as well as other issues.

This eighth pro rata interim distribution, when combined with the prior seven distributions, will equal 60.098 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The amount distributed to eligible BLMIS customers will total approximately $9.72 billion, which includes more than $839.6 million in advances committed by the Securities Investor Protection Corporation (SIPC).

Stephen P. Harbeck, President and CEO of SIPC, said, “The eighth distribution is the latest positive outcome of the excellent work done by SIPA Trustee Picard and his Counsel on this SIPA liquidation. The settlement of major litigation prior to trial makes this expedited payment possible. I also want to emphasize that none of the money recovered in these settlements is used to pay administrative costs. All trustee, legal and accounting fees, as well as administrative expenses, are paid by SIPC in the Madoff case. My hope today is that future recoveries will result in additional distributions to Madoff’s victims as soon as possible.”

Mr. Picard added, “For those who find the annual December anniversary of Madoff’s arrest difficult, we hope the recoveries that have resulted in eight distributions so far have been helpful. I am proud of our team’s accomplishments and I am gratified that many of Madoff’s victims have gotten back more of their principal investment than they ever expected to recover.”

Mr. Sheehan concluded, “The Madoff Recovery Initiative continues to defy expectations. With each distribution, the SIPA Trustee continues to beat the odds and deliver record-breaking results which benefit the defrauded victims of Madoff’s decades-long Ponzi scheme. Our ongoing focus is never on past recoveries, but always on future ones that will lead to further distributions to victims at the earliest possible opportunity.”

To date, the SIPA Trustee has allowed 2,608 claims related to 2,255 accounts and the proposed distribution will be paid on claims related to 953 accounts. If the eighth pro rata interim distribution is approved by the Bankruptcy Court, when combined with SIPC advances and the amounts from the prior seven pro rata interim distributions, 1,333 accounts will be fully satisfied (all accounts with allowed claims of up to $1,253,018.77), leaving 922 accounts partially satisfied and entitled to participate in future distributions.

The eighth pro rata interim distribution will result in the return of 1.729 percent of the allowed claim amount for each individual account, unless the allowed claim has been fully satisfied. The average payment amount to those 953 BLMIS accounts will be $263,998.40. The smallest payment totals $271.80 and the largest payment is $42,320,519.04.

As of December 14, 2016 and since his appointment on December 15, 2008, the SIPA Trustee has recovered or reached agreements to recover approximately $11.486 billion. These outcomes exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollars and percentage of stolen funds recovered.

Ultimately, 100 percent of the SIPA Trustee’s recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims. Prior distributions as of December 14, 2016 are as follows:

• The first pro rata interim distribution, which commenced on October 5, 2011, has distributed approximately $685.5 million, representing 4.602 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The second pro rata interim distribution, which commenced on September 19, 2012, has distributed approximately $4.98 billion, representing 33.556 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The third pro rata interim distribution, which commenced on March 29, 2013, has distributed approximately $696.5 million, representing 4.721 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The fourth pro rata interim distribution, which commenced on May 5, 2014, has distributed approximately $468.4 million, representing 3.180 percent of each individual account, unless the claim is fully satisfied.

• The fifth pro rata interim distribution, which commenced on February 6, 2015, has distributed approximately $403.5 million, representing 2.743 percent of each individual account, unless the claim is fully satisfied.

• The sixth pro rata interim distribution, which commenced on December 4, 2015, has distributed approximately $1.209 billion, representing 8.262 percent of each individual account, unless the claim is fully satisfied.

• The seventh pro rata interim distribution, which commenced on June 30, 2016, has distributed approximately $190.3 million, representing 1.305 percent of each individual account, unless the claim is fully satisfied.

There are 60 deemed determined claims still subject to litigation. Once litigation is either resolved or settled, these claims may be allowed and would therefore become eligible for all pro rata interim distributions to date. For that potential scenario, as of December 14, 2016, the SIPA Trustee has reserved approximately $1.931 billion. The ultimate amount of additional allowed claims depends on the outcome of litigation or negotiation and could add billions of dollars to the total amount of allowed claims.

All administrative costs of the SIPA liquidation of Bernard L. Madoff Investment Securities LLC and its global recovery efforts, which make the distributions possible, are funded by SIPC.

Upon Bankruptcy Court approval, record holders of allowed claims as of December 14, 2016 will be eligible to receive payments from the eighth pro rata interim distribution.

The Eighth Customer Fund Allocation and Distribution Motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (SMB). It can also be found on the SIPA Trustee’s website along with more information on the BLMIS liquidation at: www.madofftrustee.com.

Messrs. Harbeck, Picard and Sheehan would like to thank Seanna Brown and Heather Wlodek of BakerHostetler, who worked on the eighth pro rata interim distribution and its related filings, as well as BakerHostetler, Windels Marx and all of the attorneys and professionals whose work has led to the distribution. They would also like to thank Vineet Sehgal and his colleagues at AlixPartners, as well as Josephine Wang, Kevin Bell and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.

Madoff Trustee Requests Allocation of $342 Million to Customer Fund and Court Approval to Immediately Distribute Approximately $252 Million to BLMIS Customers with Allowed Claims

November 18, 2016
Statement Regarding Twenty-Second Fee Application

Statement from the office of Irving H. Picard, the Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Amanda Remus, spokeswoman for the SIPA Trustee & his Counsel at BakerHostetler:

On Friday, November 18, 2016, the SIPA Trustee and his Counsel at BakerHostetler filed their 22nd Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS between April 1, 2016 through July 31, 2016.

• The Application seeks approval of fees, representing more than 82,419 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $411 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month compensation period of approximately $3,763,503.62. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,130,621.70 for the four-month period, as well as expenses in the amount of $302,031.01.

• The fees requested are reasonable based on the customary compensation charged by comparably skilled practitioners in Chapter 11 matters as well as comparable bankruptcy and non-bankruptcy cases in the competitive national legal market.

• After applying the public interest discount, the total fees requested for the period were $33,871,532.58 (of which $30,484,379.32 is to be paid currently and $3,387,153.26 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 20,604 hours worked per month on the international and domestic investigations, negotiations and litigation resulting from the largest financial fraud of its kind in U.S. history. In addition, $310,899.58 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort.

As noted in the fee application:

• During the compensation period of April 1, 2016 through July 31, 2016, without the need for protracted litigation, the SIPA Trustee settled 33 cases for $73,046,985.38.

• As of the end of the compensation period (July 31, 2016), the SIPA Trustee dismissed 258 Hardship Program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

As of Friday, November 18, 2016, the SIPA Trustee has recovered or entered into agreements to recover more than $11.544 billion, representing more than 65 percent of the estimated $17.5 billion in principal lost in the Ponzi scheme by BLMIS customers who filed claims. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by 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. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.
To date, the SIPA Trustee has distributed approximately $9.467 billion to BLMIS customers with allowed claims, which includes a total of $8.801 billion in distributions from the Customer Fund and $665.8 million in net funds advanced by SIPC.

The first pro rata interim distribution commenced on October 5, 2011, and to date equals approximately $685.3 million. A second pro rata interim distribution commenced on September 19, 2012, and to date equals approximately $4.978 billon. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $696.3 million. The fourth pro rata distribution commenced on May 5, 2014 and the SIPA Trustee has distributed approximately $468.2 million. In the fifth pro rata distribution, which commenced on February 6, 2015, he has distributed approximately $403.4 million. In the sixth pro rata distribution, which commenced on December 4, 2015, the SIPA Trustee has distributed approximately $1.209 billion. The seventh pro rata distribution commenced on June 30, 2016, and to date equals approximately $190.2 billion.
In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed more than $836.6 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. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received $170.8 million in reimbursement.

A Bankruptcy Court hearing for approval of the 22nd Fee Application has been scheduled for Wednesday, December 21, 2016 at 10 a.m.

The BakerHostetler attorneys who worked on behalf of the SIPA Trustee filing this Fee Application include David J. Sheehan, Seanna Brown and Heather Wlodek.

The filing is available on the Bankruptcy Court’s website: www.nysb.uscourts.gov; Case No. 08-01789. The Fee Application as well as additional information on recoveries, settlements and court filings can be found on the SIPA Trustee’s website:www.madofftrustee.com.

Statement Regarding Twenty-Second Fee Application

November 04, 2016
Madoff Trustee Reaches Recovery Agreement of Approximately $32 Million with Cohmad Securities Corporation, the Estate of Maurice “Sonny” Cohn, Marcia B. Cohn & Marilyn Cohn

Press release from the offices of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), and Stephen P. Harbeck, President and Chief Executive Officer of the Securities Investor Protection Corporation (SIPC)


MADOFF TRUSTEE REACHES RECOVERY AGREEMENT OF APPROXIMATELY $32 MILLION WITH COHMAD SECURITIES CORPORATION, THE ESTATE OF MAURICE “SONNY” COHN, MARCIA B. COHN & MARILYN COHN

$11.491 Billion Recovered for Madoff Victims to Date in BLMIS Liquidation

NEW YORK, NEW YORK and WASHINGTON, DC – November 4, 2016 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a motion today in the United States Bankruptcy Court for the Southern District of New York, seeking approval of a settlement agreement with Cohmad Securities Corporation (“Cohmad”), the Estate of Maurice “Sonny” Cohn, Marcia B. Cohn and Marilyn Cohn (the “Cohmad Parties”). An approval hearing has been set for November 30, 2016 at 10 a.m.

Under the terms of the agreement with the Cohmad Parties, the settlement will immediately benefit the BLMIS Customer Fund by approximately $32 million. It represents more than 100 percent of the amount transferred by BLMIS to Sonny Cohn, Marilyn Cohn and Marcia Cohn as withdrawals from their Investment Advisory Accounts during the six-year period prior to the BLMIS liquidation filing, as well as more than 100 percent of the fees for referrals made to BLMIS that Sonny Cohn and Marcia Cohn received during the six-year period prior to the BLMIS liquidation filing.

“Cohmad is one of the earliest and best-known names affiliated with Madoff, and this highly successful settlement brings one important chapter of the Cohmad Securities Corporation story to a close,” said BakerHostetler co-lead attorney Kathryn M. Zunno. “We negotiated and reached this agreement despite the fact that Cohmad has been insolvent and non-operational, and a key principal (Sonny Cohn) is now deceased. We look forward to further resolution as we pursue the ongoing Cohmad-related litigation.”

Stephen P. Harbeck, President and Chief Executive Officer of SIPC, stated, “The customers of Madoff’s brokerage firm will receive all of the proceeds of this settlement. No administrative expenses, such as legal fees, forensic accounting fees, or other administrative costs will be deducted. In this case, SIPC advances funds to the SIPA Trustee to pay all administrative expenses to maximize the return to the customers. SIPC looks forward to additional settlements and additional distributions in the near future.”

This is the second recovery agreement reached in the BLMIS liquidation in two weeks. On October 28, a $277 million, global settlement was announced in Chais, et al., that will bring an immediate benefit of $232 million to the Customer Fund. With these new recovery agreements, the SIPA Trustee has recovered or has reached agreements to recover more than $11.491 billion. Distributions to BLMIS customers now total more than $9.467 billion, which includes $836.6 million in committed advances from the Securities Investor Protection Corporation.

The SIPA Trustee will continue to pursue his claims against the remaining defendants in Picard v. Cohmad et al., including certain Cohmad registered representatives who received substantial fees for referring investors in the Ponzi scheme. Under the agreement, the Cohmad Parties agree to cooperate with future discovery requests from the SIPA Trustee and make themselves available for depositions and any trials that may assist in recovering additional funds related to Cohmad for the SIPA Trustee’s ongoing recovery efforts.

BakerHostetler co-lead attorney Esterina Giuliani added, “This settlement is a key step in the overall Cohmad-related litigation that is part of the overall liquidation of BLMIS. We will now focus on pending litigation against remaining Cohmad defendants, as our team continues its global efforts to recover money stolen by Madoff to return to its rightful owners.”

The SIPA Trustee’s motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (SMB) / Adv. Pro. No. 09-01305 (SMB). The motion – as well as further information on recoveries to date, other legal proceedings, further settlements, and general information – can also be found on the SIPA Trustee’s website: www.madofftrustee.com.

In addition to Ms. Zunno and Ms. Giuliani, Messrs. Harbeck and Picard, and David J. Sheehan, Chief Counsel to the SIPA Trustee, would like to thank the Securities Investor Protection Corporation’s Josephine Wang and Kevin Bell, as well as BakerHostetler attorneys Oren J. Warshavsky, Thomas L. Long, Elizabeth M. Schutte, Shawn Hough, Frank M. Oliva, Kevin M. Wallace, Samuel M. Light, Lauren R. Weinberg, and Brian F. Allen, who assisted with the work on this settlement.

Madoff Trustee Reaches Recovery Agreement of Approximately $32 Million with Cohmad Securities Corporation, the Estate of Maurice “Sonny” Cohn, Marcia B. Cohn & Marilyn Cohn