STATEMENTS & PRESS RELEASES
Sort By:
March 15, 2018
Statement Regarding Twenty-Sixth 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 Thursday, March 15, 2018, the SIPA Trustee and his Counsel at BakerHostetler filed their 26th 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, 2017 through November 30, 2017.

• The Application seeks approval of fees, representing approximately 80,558.80 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $423.68 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 $3,792,391.56. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $2,015,879.60 (not including the 10% public interest discount), and wrote off expenses customarily charged to other clients in the amount of $306,170.69.

• 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 $34,131,524.04 (of which $30,718,371.64 is to be paid currently and $3,413,152.40 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 20,139.70 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, $290,520.17 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, 2017 through November 30, 2017, without the need for protracted litigation, the SIPA Trustee settled 38 cases for $797,072,849.02. The SIPA Trustee entered into settlements subsequent to the Compensation Period that will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (November 30, 2017), the SIPA Trustee dismissed 280 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 January 31, 2018, the SIPA Trustee has recovered or entered into agreements to recover approximately $12.846 billion, representing over 73 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.

The SIPA Trustee has distributed approximately $11.441 billion to BLMIS customers with allowed claims through February 22, 2018, which includes a total of $10.597 billion in distributions from the Customer Fund and $844.313 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 $769.1 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $5.6 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $782.2 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $526.1 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $453.3 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.4 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $214.0 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $283.0 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $620.9 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 $844.313 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 $205 million in reimbursement.

The Bankruptcy Court hearing for approval of the 26th Fee Application has been scheduled for April 25, 2018 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-Sixth Fee Application

February 22, 2018
Press Release: Ninth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals Approximately $620.9 Million

NINTH PRO RATA INTERIM DISTRIBUTION OF RECOVERED FUNDS
TO MADOFF CLAIMS HOLDERS COMMENCES;
TOTALS APPROXIMATELY $620.9 MILLION

Aggregate Distributions Total More Than $11.4 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – February 22, 2018 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), announced that the ninth pro rata interim distribution from the Customer Fund to eligible BLMIS customers commenced today.

The SIPA Trustee is distributing approximately $620.9 million on a pro rata basis to BLMIS account holders with allowed claims, bringing the aggregate amount distributed to eligible claimants to more than $11.4 billion, which includes more than $844.3 million in committed advances from the Securities Investor Protection Corporation (SIPC). The ninth pro rata interim distribution, when combined with the prior eight distributions, represents 63.904 percent of each allowed claim amount – unless that claim has been fully satisfied – and will be paid to record holders of allowed claims as of January 31, 2018.

“Each distribution is another significant victory as we work to unwind and bring relief for the harm done in the Madoff Ponzi scheme,” said SIPC President and CEO Stephen P. Harbeck. “All of the funds recovered by the SIPA Trustee go to the victims of the Madoff fraud. And with the continued success of the Trustee and his legal team, we are hopeful there will be further distributions in 2018. It is important to note that every single penny recovered by the Madoff Recovery Initiative goes to satisfy allowed customer claims. SIPC picks up all the costs of the Madoff Recovery Initiative as the Securities Investor Protection Act directs.”

The ninth 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 since the last interim distribution in February 2017. The most notable was the recovery agreement of approximately $687 million with the Thema International Fund as well as the approximately $370 million recovery agreements with the Lagoon and Thema Funds.

As of January 31, 2018 and since his appointment in December 2008, the SIPA Trustee has received $12.846 billion as a result of recoveries and agreements to recover. 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 – both direct and indirect – 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. Harbeck, Picard and Sheehan would like to thank BakerHostetler attorneys Oren Warshavsky, Seanna Brown and Heather Wlodek, who worked on the ninth 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, Nathanael Kelley, and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.

 

 

Press Release: Ninth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals Approximately $620.9 Million

February 12, 2018
Press Release: Madoff Trustee Reaches Recovery Agreement with Alpha Prime Fund for $76 Million

MADOFF TRUSTEE REACHES RECOVERY AGREEMENT
WITH ALPHA PRIME FUND FOR $76 MILLION

Madoff Trustee Has Recovered or Reached Agreements to Recover More Than $12.8 Billion To Date in BLMIS Liquidation


More Than $10 Billion Distributed to Madoff Victims To Date


NEW YORK, NEW YORK and WASHINGTON, DC – February 12, 2018 – 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 Alpha Prime Fund Ltd. (“Alpha Prime”). An approval hearing for the agreement has been set for March 28, 2018 at 10 a.m.

Alpha Prime was a BLMIS feeder fund incorporated under Bermuda law. Through this settlement, the SIPA Trustee will recover $76.45 million, representing 100 percent of the transfers Alpha Prime received from BLMIS in the two years preceding the commencement of BLMIS’s SIPA proceeding. This agreement leaves open issues concerning Alpha Prime’s ability to collect certain monies from the BLMIS Customer Fund.

“This agreement confers a significant, immediate benefit to the BLMIS Customer Fund,” said BakerHostetler partner Oren J. Warshavsky. “Our commitment to the BLMIS Customer Fund is evident with this unique settlement. This could be a game changer for how trustees approach complicated resolutions going forward.”

“Once again, the SIPA Trustee and his team have reached a favorable outcome for the customers of BLMIS,” said Stephen P. Harbeck, President and Chief Executive Officer of SIPC. “This is an important addition to the Customer Fund and the recoveries will be distributed as quickly as possible.”

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, Tatiana Markel, and Carrie A. Longstaff, who assisted with the work on the matter and the settlement.

Press Release: Madoff Trustee Reaches Recovery Agreement with Alpha Prime Fund for $76 Million

January 30, 2018
Statement Regarding Bankruptcy Court Approval of Ninth 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 Heather Wlodek, 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 $1.3 billion in recoveries to the BLMIS Customer Fund and has authorized the SIPA Trustee to proceed with the ninth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As announced on December 18, 2017, with today’s court approval, the SIPA Trustee will allocate approximately $1.3 billion to the BLMIS Customer Fund, with approximately $584.5 million available for immediate distribution to customers with allowed claims. The remaining allocation will be held in reserve for claims that are deemed determined pending the resolution of litigation as well as other issues.

This ninth pro rata interim distribution, when combined with the prior eight distributions, will equal 63.683 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total nearly $11.4 billion, which includes more than $842.9 million in advances committed by the Securities Investor Protection Corporation (SIPC). All allowed customer claims up to approximately $1,375,000.00 will be fully satisfied after the distribution. The distribution is expected to commence by mid-February. Record holders of allowed claims as of January 30, 2018 will be eligible to receive payments from the ninth interim distribution.

The supplemental Ninth 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 18, 2017 Press Release: http://www.madofftrustee.com/statements-19.html#813

 

Statement Regarding Bankruptcy Court Approval of Ninth Interim Pro Rata Distribution

December 18, 2017
Press Release: Madoff Trustee Requests Allocation of $1.3 Billion to Customer Fund and Court Approval to Immediately Distribute Approximately $584 Million to BLMIS Customers with Allowed Claims

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
$1.3 BILLION TO CUSTOMER FUND
AND COURT APPROVAL TO IMMEDIATELY DISTRIBUTE
APPROXIMATELY $584 MILLION
TO BLMIS CUSTOMERS WITH ALLOWED CLAIMS

Ninth Pro Rata Interim Distribution Will Bring
Aggregate Customer Payout in Global Madoff Liquidation to More Than $11.4 Billion


NEW YORK, NEW YORK and WASHINGTON, DC– December 18, 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 for an allocation of recoveries to the BLMIS Customer Fund and an authorization for a ninth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims. A hearing has been scheduled for Wednesday, January 31, 2018 at 10 a.m. EST.

Plans for the ninth pro rata interim distribution are the result of approximately $1.3 billion in settlements and recoveries achieved by the SIPA Trustee, his Chief Counsel David J. Sheehan, and their legal teams since the last interim distribution in February 2017. The most notable was the recovery agreement of approximately $687 million with the Thema International Fund as well as the approximately $370 million recovery agreement with the Lagoon and Thema Funds. With these and other additional settlement outcomes, including the $23 million recovery agreement with the estates of the Madoff sons, the SIPA Trustee stands ready to make a ninth pro rata interim distribution to allowed claimants of 3.585 percent on each allowed claim.

If the distribution motion is approved on January 31, 2018, the SIPA Trustee will allocate a total of approximately $1.3 billion to the BLMIS Customer Fund, with approximately $584.5 million available for immediate distribution to customers with allowed claims. The remaining allocation that was not previously paid to claimants will be held in reserve for claims that are deemed determined pending the resolution of litigation as well as other issues.

This ninth pro rata interim distribution, when combined with the prior eight distributions, will equal 63.683 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total nearly $11.4 billion, which includes more than $842.8 million in advances committed by the Securities Investor Protection Corporation (SIPC).

Stephen P. Harbeck, President and CEO of SIPC, said, “The momentum of the SIPA Trustee and his teams continues to accelerate. Their successes set new benchmarks for future recovery efforts. SIPC has confidence that the Madoff Recovery Initiative will continue to deliver additional, significant distributions in 2018 and beyond. It is important to note that every single penny recovered by the Madoff Recovery Initiative goes to satisfy allowed customer claims. SIPC picks up all the costs of the Madoff Recovery Initiative as the Securities Investor Protection Act directs.”

“The progress of our teams has been remarkable,” said Mr. Picard. “Even now, nearly a decade since the unmasking of the Madoff fraud, we are still finding and recovering millions of dollars for the victims of this complex global deception. Additional distributions are still on the horizon and we remain committed to restoring as much of the stolen money as possible.”

“Both the direct and indirect investors in Madoff’s operation will benefit from this distribution, as they have from all the distributions to date,” said Mr. Sheehan. “Our teams had another productive and successful year in 2017, and we are pleased to move forward without delay to distribute as much of the 2017 recoveries as possible.”

The ninth pro rata interim distribution will result in the return of 3.585 percent of the allowed claim amount for each individual account, unless the allowed claim has been fully satisfied. The average payment amount to those 926 BLMIS accounts will be $631,198.93. The smallest payment totals $563.56 and the largest payment is $87,749,601.36. Claimants who qualified for hardship status under the SIPA Trustee’s Hardship Program will receive 15 payments.

To date, the SIPA Trustee has allowed 2,625 claims related to 2,265 accounts and the proposed distribution will be paid on claims related to 926 accounts. If the ninth pro rata interim distribution is approved by the Bankruptcy Court, when combined with SIPC advances and the amounts from the prior eight pro rata interim distributions, 1,386 accounts will be fully satisfied (all accounts with allowed claims of up to $1,375,000.00), leaving 879 accounts partially satisfied and entitled to participate in future distributions.

As of November 30, 2017 and since his appointment on December 15, 2008, the SIPA Trustee has recovered approximately $12.789 billion – nearly 73 percent of the currently estimated principal lost in the Ponzi scheme by those who filed claims. 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. All Trustee, legal and accounting fees, as well as 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.

Forty claims relating to 30 accounts are currently categorized as “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 November 30, 2017, the SIPA Trustee has reserved approximately $1.579 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.

Upon Bankruptcy Court approval, record holders of allowed claims as of January 31, 2018 will be eligible to receive payments from the ninth pro rata interim distribution.

The Ninth 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 Oren Warshavsky, Seanna Brown and Heather Wlodek of BakerHostetler, who worked on the ninth 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, Nathanael Kelley and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.


Press Release: Madoff Trustee Requests Allocation of $1.3 Billion to Customer Fund and Court Approval to Immediately Distribute Approximately $584 Million to BLMIS Customers with Allowed Claims

November 15, 2017
Statement Regarding Twenty-Fifth 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, November 15, 2017, the SIPA Trustee and his Counsel at BakerHostetler filed their 25th 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 April 1, 2017 through July 31, 2017.

• The Application seeks approval of fees, representing approximately 77,409 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $436 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 $3,753,642.24. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,989,364.05 for the four-month period, as well as expenses in the amount of $280,487.83.

• 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 $33,782,780.11 (of which $30,404,502.10 is to be paid currently and $3,378,278.01 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 19,352 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, $412,517.60 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, 2017 through July 31, 2017, without the need for protracted litigation, the SIPA Trustee settled 26 cases for $403,915,135.54. The SIPA Trustee entered into settlements subsequent to the Compensation Period that will bring an additional $769.935 million into the Customer Fund.

• As of the end of the Compensation Period (July 31, 2017), the SIPA Trustee dismissed 275 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 October 31, 2017, the SIPA Trustee has recovered or entered into agreements to recover approximately $12.8 billion, representing nearly 73 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 $10.812 billion to BLMIS customers with allowed claims, which includes a total of $9.969 billion in distributions from the Customer Fund and $842.851 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 $768.6 million. A second pro rata interim distribution commenced on September 19, 2012, and to date equals approximately $5.6 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $781.7 million. The fourth pro rata interim distribution commenced on May 5, 2014 and the SIPA Trustee has distributed approximately $525.8 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $453.0 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee has distributed approximately $1.4 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $213.8 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $282.8 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 $842.851 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 25th Fee Application has been scheduled for Wednesday, December 20, 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-Fifth Fee Application

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