STATEMENTS & PRESS RELEASES
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June 15, 2016
Statement Regarding Bankruptcy Court Approval of Seventh 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 $247 million in recoveries to the BLMIS Customer Fund and has authorized the SIPA Trustee to proceed with the seventh 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 $247.013 million to the BLMIS Customer Fund, with approximately $171.016 million available for immediate distribution to customers with allowed claims and approximately $75.997 million held in reserve for claims that are deemed determined pending the resolution of litigation, as well as other issues. This seventh interim distribution, when combined with the prior six distributions, will equal 58.237 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 $9.45 billion, which includes more than $836.63 million in advances committed by the Securities Investor Protection Corporation (SIPC).

The distribution is expected to commence by mid-July. Record holders of allowed claims as of June 15, 2016 will be eligible to receive payments from the seventh interim distribution.

The supplemental Seventh 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 May 25, 2016 Press Release:
http://www.madofftrustee.com/document/news/000678-2016-may-25-statement.pdf

Statement Regarding Bankruptcy Court Approval of Seventh Interim Pro Rata Distribution

May 31, 2016
Joint Statement from the SIPA Trustee for the Liquidation of BLMIS and the Katz Wilpon Settling Parties

JOINT STATEMENT FROM THE SIPA TRUSTEE FOR THE LIQUIDATION OF BERNARD L. MADOFF INVESTMENT SECURITIES LLC
AND
THE KATZ WILPON SETTLING PARTIES

NEW YORK, NEW YORK – May 31, 2016 – The Katz Wilpon Settling Parties recently requested a modification to the June 1, 2012 Settlement Agreement with Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS). The Settling Parties asked the SIPA Trustee to allow payments owed in 2016 and 2017 to be extended over a longer period of time, while efforts continue on the part of the SIPA Trustee and his legal team to recover monies that can and will be used to offset those payments through future pro rata interim distributions.

Under the terms of the original, five-year settlement agreement, the Katz Wilpon Settling Parties owed a maximum amount of $162 million, with payments to be made to the SIPA Trustee from the Katz Wilpon Settling Parties’ allowed customer claims of $176,585,337.99, which they assigned to the SIPA Trustee. Due to the success of the Madoff Recovery Initiative to date and the six pro rata interim distributions equaling approximately 57.064 percent of the amount payable from the Katz Wilpon assigned customer claims, that $162 million has been reduced to a maximum amount of approximately $61 million. It is expected that the approximately $61 million currently owed by the Katz Wilpon Settling Parties will be further reduced as a result of the SIPA Trustee’s ongoing recovery efforts and future distributions. However, under the original settlement agreement, the approximately $61 million would be paid in two installments, $23,321,931 on June 1, 2016 and $37,911,412 on June 1, 2017.


After discussions, a revised agreement was reached. Under the terms of the revised agreement:

· The Katz Wilpon Settling Parties will make a payment of $16 million on or before June 1, 2016.

· The balance due on June 1, 2017 will be divided in four annual installments (2017 – 2020).

· Katz Wilpon Settling Parties will pay an interest rate of 3.5 percent on the unpaid balance, which is expected to result in additional payments to the BLMIS Customer Fund of at least an estimated $2,200,000 by 2020.

· Katz Wilpon Settling Parties’ principals, Mr. Fred Wilpon and Mr. Saul Katz, have increased their personal guarantees to cover the entirety of the remaining unpaid balance.

The SIPA Trustee has agreed to this updated arrangement as he believes this accommodation is reasonable given the additional value it will create for the Customer Fund and ultimately for customers with allowed claims.

A complete history of the liquidation, including the distributions to the SIPA Trustee from the Katz Wilpon Settling Parties’ assigned claims, can be found on the website (www.madofftrustee.com).

There will be no further comment beyond this statement.

Joint Statement from the SIPA Trustee for the Liquidation of BLMIS and the Katz Wilpon Settling Parties

May 26, 2016
Press Release: Madoff Trustee Requests Allocation of $247 Million to Customer Fund and a Seventh Interim Pro Rata Distribution

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 REQUESTS ALLOCATION OF $247 MILLION
TO CUSTOMER FUND
AND COURT APPROVAL TO IMMEDIATELY DISTRIBUTE $171 MILLION TO BLMIS CUSTOMERS WITH ALLOWED CLAIMS

Seventh Interim Pro Rata Distribution Will Bring
Aggregate Customer Payout in Global Madoff Liquidation to more than $9.45 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – May 26, 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 a seventh pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims. A hearing has been scheduled for Wednesday, June 15, 2016, at 10:00 a.m. EDT.

Plans for a seventh interim pro rata distribution may now be made, as a result of the SIPA Trustee and his legal teams – led by his Chief Counsel, David J. Sheehan – having successfully reached recovery agreements during the past six months with a number of parties, among them: Vizcaya Partners Limited, entities of Bank J. Safra, Asphalia Fund, Ltd., Zeus Partners Limited, Pictet et Cie, and entities related to Thybo Asset Management Ltd. With these and other additional funds, the SIPA Trustee stands ready to make a seventh pro rata distribution to allowed claimants of 1.173 percent on each allowed claim.

If the motion is approved, the SIPA Trustee will allocate approximately $247.013 million to the BLMIS Customer Fund, with approximately $171.016 million available for immediate distribution to customers with allowed claims and approximately $75.997 million held in reserve for claims that are deemed determined pending the resolution of litigation, as well as other issues.

This seventh interim distribution, when combined with the prior six distributions, will equal 58.237 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 $9.45 billion, which includes more than $836.63 million in advances committed by the Securities Investor Protection Corporation (SIPC).

Stephen P. Harbeck, President and CEO of SIPC, said, “Time is of the essence for Madoff’s victims. We applaud the ongoing, unflagging efforts of the SIPA Trustee and his teams to put money back in the hands of the Madoff victims.”

“It is vital to move expeditiously to return stolen Madoff funds to the rightful owners,” said Mr. Picard. “The victims have waited years for restitution. This distribution is somewhat smaller than our prior actions, but it is still significant, especially for the additional claimants whose claims now will be fully satisfied.”

“Our ongoing ability to return funds to Madoff’s victims is a testament to the strength of our litigation activities as well as to our successful settlement negotiations,” said Mr. Sheehan. “With this positive momentum, we are confident we can deliver additional recoveries and distributions this year.”

The SIPA Trustee has allowed 2,597 claims and the proposed distribution will be paid on claims relating to 972 BLMIS accounts. The seventh pro rata interim distribution will result in the return of 1.173 percent of the allowed claim amount for each individual account, unless the allowed claim has been fully satisfied. If approved, and when combined with SIPC payments and the amounts from the prior six interim distributions, 1,289 accounts will be fully satisfied (all accounts with a net equity of up to $1,196,453.95). The average payment amount to those 972 BLMIS accounts will be $175,941.97. The smallest payment totals $136.69 and the largest payment is $28,711,375.84. In addition, SIPC will be reimbursed for its advances to accounts that the seventh interim distribution fully satisfies.

As of May 25, 2016, the SIPA Trustee has recovered or reached agreements to recover approximately $11.144 billion since his appointment in December 2008. 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 May 25, 2016 are as follows:

• The first pro rata interim distribution, which commenced on October 5, 2011, has distributed approximately $685.3 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 $4.978 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 $696.3 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 $468.2 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 $403.4 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.

There are 71 deemed determined claims still subject to litigation. Once litigation is resolved or settlements reached, these claims may be allowed and would therefore become eligible for all pro rata distributions to date. For that potential scenario, as of May 25, 2016, the SIPA Trustee has reserved approximately $1.891 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 June 15, 2016 will be eligible to receive payments from the seventh interim distribution.

The Seventh 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 seventh pro rata interim distribution and its related filings, as well as BakerHostetler and 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

Press Release: Madoff Trustee Requests Allocation of $247 Million to Customer Fund and a Seventh Interim Pro Rata Distribution

March 23, 2016
Statement Regarding Twentieth 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 Wednesday, March 23, 2016, the SIPA Trustee and his Counsel at BakerHostetler filed their 20th Interim Fee Application with the United States Bankruptcy Court for their work on the global liquidation of BLMIS between August 1, 2015 through November 30, 2015.

• The Application seeks approval of fees, representing more than 88,911 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $412 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 $4,072,566.37. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,602,448.70 for the four-month period, as well as expenses in the amount of $112,852.71.

• 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 $36,653,097.33 (of which $32,987,787.60 is to be paid currently and $3,665,309.73 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 22,227 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, $255,238.19 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, 2015 through November 30, 2015, without the need for protracted litigation, the SIPA Trustee settled 73 cases for $245.75 million.

• As of the end of the compensation period (November 30, 2015), the Trustee dismissed 210 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 Wednesday, March 23, 2016, the SIPA Trustee has recovered or entered into agreements to recover more than $11.123 billion, representing more than 63 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 the Securities Investor Protection Corporation (SIPC), which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. 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 $9.277 billion to BLMIS customers with allowed claims, which includes a total of $8.604 billion in distributions from the Customer Fund and $673 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 $468.2 million. In the fifth pro rata distribution, which commenced on February 6, 2015, he has distributed $403.4 million. The sixth pro rata distribution commenced on December 4, 2015, and to date equals approximately $1.209 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 $836.5 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 $163.5 million in reimbursement.

The Bankruptcy Court hearing for approval of the 20th Fee Application has been scheduled for Wednesday, April 27, 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 Twentieth Fee Application

December 04, 2015
Press Release: Sixth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences: Totals Approximately $1.193 Billion

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)

SIXTH PRO RATA INTERIM DISTRIBUTION OF RECOVERED FUNDS TO MADOFF CLAIM HOLDERS COMMENCES;
TOTAL MORE THAN $1.19 BILLION

Aggregate Distributions to Date Total Approximately $9.16 Billion

NEW YORK, NEW YORK – December 4, 2015 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), said that the sixth pro rata interim distribution of recoveries from the Customer Fund to eligible BLMIS customers commenced today, Friday, December 4, 2015.

In the sixth interim distribution, the SIPA Trustee will distribute approximately $1.19 billion on a pro rata basis to BLMIS account holders with allowed claims, bringing the total amount distributed to eligible claimants to more than $9.16 billion, including $833 million in committed advances from the Securities Investor Protection Corporation (SIPC).

SIPC President and CEO Stephen P. Harbeck said, “This is another major milestone in this massive recovery effort. I commend Mr. Picard, his chief counsel David J. Sheehan, and their global team for their tireless efforts. We look forward to the Trustee’s next announcement of additional distributions at the earliest possible time.”

The sixth distribution will be paid to record holders of allowed claims as of November 18, 2015 on claims relating to 1,071 BLMIS accounts. Claimants will receive 8.262 percent of the allowed claim amount of each account, unless the claim is fully satisfied.

The average payment in the sixth distribution will total approximately $1.11 million. The smallest payment is approximately $1,298.00 and the largest payment is approximately $202 million.

Currently, the SIPA Trustee has allowed 2,579 claims related to 2,238 BLMIS accounts. Of these accounts, 1,269 accounts with allowed claims up to $1,163,087.00 will be fully satisfied as of this sixth interim distribution. When combined with the five prior interim distributions, the sixth distribution will satisfy up to 57.064 percent of each customer’s allowed claim unless the account is fully satisfied.

The sixth distribution comprises funds derived from the release of time-based damages reserves held under a September 2012 Bankruptcy Court order as well as more than $359 million in settlements and new recoveries that have been secured since the fifth distribution.

To date, the SIPA Trustee has recovered or reached agreements to recover more than $10.91 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.

Prior distributions by the SIPA Trustee to BLMIS accounts with allowed claims are as follows:

• The first pro rata interim distribution, which commenced on October 5, 2011, has distributed approximately $676.6 million, representing 4.602 percent of the allowed claim amount of each individual account, unless the claim was fully satisfied.

• The second pro rata interim distribution, which commenced on September 19, 2012, has distributed approximately $4.915 billion, representing 33.556 percent of the allowed claim amount of each individual account, unless the claim was fully satisfied.

• The third pro rata interim distribution, which commenced on March 29, 2013, has distributed approximately $687.4 million, representing 4.721 percent of the allowed claim amount of each individual account, unless the claim was fully satisfied.

• The fourth pro rata interim distribution, which commenced on May 5, 2014, has distributed approximately $462.2 million, representing 3.180 percent of each individual account, unless the claim was fully satisfied.

• The fifth pro rata interim distribution, which commenced on February 6, 2015, has distributed approximately $398.3 million, representing 2.743 percent of each individual account, unless the claim is fully satisfied.

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 thank BakerHostetler Partner Seanna Brown and Associate Heather Wlodek, who worked on the sixth pro rata interim distribution and its related filings, as well as the law firms of BakerHostetler and 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 on the distribution and the ongoing Madoff Recovery Initiative.

Press Release: Sixth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences: Totals Approximately $1.193 Billion

November 23, 2015
Statement Regarding Nineteenth 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 Monday, November 23, 2015, the SIPA Trustee and his Counsel at BakerHostetler filed their 19th Interim Fee Application with the United States Bankruptcy Court for their work on the global liquidation of BLMIS between April 1, 2015 and July 31, 2015.

• The Application seeks approval of fees, representing more than 100,137 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $412 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 $4,588,000. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,204,171 for the four-month period, as well as expenses in the amount of $155,459.

• 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 $41,292,007 (of which $37,162,806 is to be paid currently and $4,129,200 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 25,034 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, $315,058 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, 2015 through July 31, 2015, without the need for protracted litigation, the SIPA Trustee settled fifty five cases for $183.8 million.

• As of the end of the compensation period (July 31, 2015), the Trustee dismissed 210 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 November 23, 2015, the SIPA Trustee has recovered or entered into agreements to recover more than $10.911 billion, representing more than 62 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 the Securities Investor Protection Corporation (SIPC), which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. 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 $7.960 billion to BLMIS customers with allowed claims, which includes a total of $7.255 billion in distributions from the Customer Fund and $704.9 million in net funds advanced by SIPC.

The first pro rata interim distribution commenced on October 5, 2011, and to date equals approximately $675.7 million. A second pro rata interim distribution commenced on September 19, 2012, and to date equals approximately $4.908 billon. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $686.5 million. The fourth pro rata distribution commenced on May 5, 2014 and the SIPA Trustee has distributed $461.6 million. In the fifth pro rata distribution, which commenced on February 6, 2015, he has distributed $397.7 million. The sixth pro rata distribution was approved by the Bankruptcy Court on November 18th, 2015. Once it becomes a final, unappealable order, the distribution will commence (expectation is before the end of the year.)

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. As of November 23, 2015, SIPC has committed more than $830.2 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 $125.3 million in reimbursement.

The Bankruptcy Court hearing for approval of the 19th Fee Application has been scheduled for December 17, 2015 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 Nineteenth Fee Application

November 18, 2015
Statement Regarding Bankruptcy Court Approval of Sixth 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 $1.5 billion in recoveries to the BLMIS Customer Fund and has authorized the SIPA Trustee to proceed with the sixth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As previously announced, $1.18 billion of the allocation is available for immediate distribution to customers with allowed claims and approximately $320 million will be held in reserve for claims that are deemed determined pending the resolution of litigation, as well as other issues. When completed, the sixth distribution will bring the amount distributed to eligible BLMIS customers to approximately $9.13 billion – nearly 57 percent of the losses documented by Madoff’s victims – which includes more than $827 million in advances committed by the Securities Investor Protection Corporation (SIPC). As of today, the SIPA Trustee has recovered or entered agreements to recover more than $10.9 billion.

The distribution is expected to commence before year-end 2015. Record holders of allowed claims as of November 18, 2015 will be eligible to receive payments from the sixth interim distribution.

The supplemental Sixth 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 October 20 Press Release:
http://www.madofftrustee.com/document/news/000620-october-20-2015-2250-press-release-on-supplemental-information-and-the-6th-interim-distribution-final.pdf

Statement Regarding Bankruptcy Court Approval of Sixth Interim Pro Rata Distribution

October 23, 2015
Statement Regarding Recovery Agreement of $46.6 Million Reached with the Thybo Feeder Funds

Statement from the office of Irving H. Picard, Securities Investor Protection Act (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 BLMIS, and his counsel:

SIPA Trustee for the liquidation of BLMIS Irving H. Picard filed a motion today in the United States Bankruptcy Court for the Southern District of New York seeking approval of a settlement agreement with Thybo Asset Management Limited and Thybo Stable Fund Ltd., collectively, the “Thybo Funds.”

Under the terms of the agreement, the settlement with the Thybo Funds will immediately benefit the BLMIS Customer Fund by approximately $46.6 million. The payment amount reflects 75 percent of the $62 million withdrawn by the defendants within the six-year period prior to the BLMIS liquidation filing date, and also reflects an adjustment based on the recovery received by the SIPA Trustee as a result of his settlement with the Internal Revenue Service. The approval hearing has been set for November 18, 2015 at 10:00 a.m.

The Thybo Funds will be entitled to an allowed claim of $186 million and the corresponding catch-up payments based on the five pro rata interim distributions made in the SIPA liquidation of BLMIS to date and will be eligible for the sixth distribution announced earlier this week. The Thybo Funds will then continue to receive future distributions, along with all other BLMIS customers with allowed claims who are not yet fully satisfied.

Upon closing, the Thybo Funds will make the settlement payment to the SIPA Trustee through a deduction from the distribution on the allowed claim, and the SIPA Trustee will then pay the remaining balance of the catch-up distribution payments due on the allowed claim.

# # #

*********************

Link to the Motion:
http://www.madofftrustee.com/document/dockets/006611-006611-thybomotion-09-01365.pdf

Statement Regarding Recovery Agreement of $46.6 Million Reached with the Thybo Feeder Funds

October 20, 2015
Press Release: Madoff Trustee Requests Court Approval for Release of $1.5 Billion From Customer Fund and a Sixth Interim Pro Rata Distribution

MADOFF TRUSTEE REQUESTS RELEASE OF $1.5 BILLION
FROM CUSTOMER FUND

Supreme Court Decision Permits Request for Court Approval of
Sixth Interim Pro Rata Distribution to Bring
Aggregate Customer Payout in Global Madoff Liquidation to Approximately $9.13 Billion

Nearly 57 Percent of Losses Will Be Returned to Customers

NEW YORK, NEW YORK and WASHINGTON, DC – October 20, 2015 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a supplemental 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 a sixth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims. A hearing has been scheduled for Wednesday, November 18, 2015 at 10:00 a.m.

Plans for a sixth interim pro rata distribution may now proceed after the Supreme Court’s decision on October 5, 2015 not to review lower court decisions regarding the applicability of so-called “time-based damages” in the ongoing liquidation of the Madoff firm. The Court’s action affirmed the SIPA Trustee’s position on this issue. In the motion, the SIPA Trustee seeks the release of funds that include reserves held under a September 2012 Bankruptcy Court order and more than $345 million in settlements and new recoveries that have been secured since the fifth distribution, which commenced in February 2015.

If the motion is approved, the SIPA Trustee will allocate $1.5 billion, with $1.18 billion available for immediate distribution to customers with allowed claims and approximately $320 million held in reserve for claims that are deemed determined pending the resolution of litigation, as well as other issues. This will bring the amount distributed to eligible BLMIS customers to approximately $9.13 billion, which includes more than $827 million in advances committed by the Securities Investor Protection Corporation (SIPC).

Stephen P. Harbeck, President and CEO of SIPC, said, “The courts have upheld the Trustee’s and SIPC’s application of SIPA. The Supreme Court’s decision not to review the Second Circuit’s decision allows Irving Picard to move forward with the distribution as soon as possible, while his global legal team continues to pursue additional, significant recoveries for BLMIS customers.

“Recoveries for the BLMIS Customer Fund now total nearly $11 billion,” continued Mr. Harbeck. “That is much more than anyone could have expected at the start of the case in 2008. The legal strategy, and the execution of that strategy by the SIPA Trustee and his counsel, led by David J. Sheehan, will maximize the return to Madoff’s customers. The result here, fully funded by SIPC at no cost to customers, shows that the Securities Investor Protection Act functions as Congress intended. I congratulate the SIPA Trustee and his counsel as they continue to make distributions and increase the return to the victims of this enormous theft.”

The sixth pro rata interim distribution will result in the return of 8.186 percent of the allowed claim amount for each individual account, unless the allowed claim has been fully satisfied. The average payment for an allowed claim issued in the sixth distribution is $1,110,423.34. The smallest payment totals $1,286.84 and the largest payment is $200,367,708.98.

Currently, the SIPA Trustee has allowed 2,564 claims related to 2,227 BLMIS accounts. Of these accounts, 1,264 accounts with allowed claims totaling $1,161,193.87 or less – or more than 56 percent – will be fully satisfied following the sixth interim distribution. The sixth interim distribution, when combined with the prior interim distributions, will satisfy up to 56.988 percent of each customer’s allowed claim unless the account is fully satisfied. In addition, SIPC will be reimbursed for its advances to accounts that the sixth interim distribution fully satisfies.

As of October 20, 2015, the SIPA Trustee has recovered or reached agreements to recover approximately $10.9 billion since his appointment in December 2008. 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 October 20, 2015 are as follows:

• The first pro rata interim distribution, which commenced on October 5, 2011, has distributed approximately $675.3 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 $4.906 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 $686.1 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 $461.4 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 $397.5 million, representing 2.743 percent of each individual account, unless the claim is fully satisfied.

There are 109 deemed determined claims still subject to litigation. Once litigation is resolved or settlements reached, these claims may be allowed and would therefore become eligible for all pro rata distributions to date. For that potential scenario, as of October 20, 2015, the SIPA Trustee has reserved approximately $1.706 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 approval, record holders of allowed claims as of November 18, 2015 will be eligible to receive payments from the sixth interim distribution.

The supplemental Sixth 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 sixth pro rata interim distribution and its related filings, as well as the legal firms of BakerHostetler and 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.

 

Press Release: Madoff Trustee Requests Court Approval for Release of $1.5 Billion From Customer Fund and a Sixth Interim Pro Rata Distribution

October 05, 2015
Statement Regarding United States Supreme Court’s Denial of Petition for Certiorari in “Time-Based Damages” Issue

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

Attributable to Amanda Remus, spokeswoman for SIPA Trustee Irving H. Picard and his counsel:

Plans for a sixth interim pro rata distribution of funds recovered in the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) can now proceed after the Supreme Court’s decision today not to review a petition for writ of certiorari regarding the applicability of an inflation or interest adjustment on the customer claims in Madoff’s Ponzi scheme. The Supreme Court’s ruling upholds lower court decisions that Madoff victims are not entitled to the so-called “time-based damages” to the funds they had deposited with BLMIS.

The SIPA Trustee will immediately request a new hearing date for approval of the Customer Fund Allocation and Distribution Motion originally filed on April 15, 2015 with the United States Bankruptcy Court for the Southern District of New York. In the sixth pro rata interim distribution motion, the SIPA Trustee sought the release of $1.249 billion of the $1.449 billion held in reserve under a September 2012 Bankruptcy Court order, with $904 million available for immediate distribution to BLMIS customers with allowed claims and approximately $345 million held in reserve for claims that are “deemed determined” pending the resolution of litigation and other issues.

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.

The SIPA Trustee would like to thank the attorneys who worked on his behalf on this petition including: David J. Sheehan and Seanna R. Brown of BakerHostetler and Thomas C. Goldstein and Tejinder Singh of Goldstein & Russell, as well as Josephine Wang and Kevin Bell, attorneys at the Securities Investor Protection Corporation (SIPC).
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Link to the original April 15th press release:
http://www.madofftrustee.com/document/news/000579-2015-april-15-sipa-trustee-6th-dist-filing-press-release-final.pdf

Statement Regarding United States Supreme Court’s Denial of Petition for Certiorari in “Time-Based Damages” Issue