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

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

Aggregate Distributions Total Approximately $9.72 Billion


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Statement Regarding Bankruptcy Court Approval of Eighth Interim Pro Rata Distribution

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

November 18, 2016
Statement Regarding Twenty-Second Fee Application

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

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

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

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

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

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

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

As noted in the fee application:

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

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

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

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by SIPC, which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.
To date, the SIPA Trustee has distributed approximately $9.467 billion to BLMIS customers with allowed claims, which includes a total of $8.801 billion in distributions from the Customer Fund and $665.8 million in net funds advanced by SIPC.

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

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

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

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

Statement Regarding Twenty-Second Fee Application

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

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


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

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

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

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

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

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

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

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

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

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

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

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

October 28, 2016
Madoff SIPA Trustee, California Attorney General, and Private Litigants Reach Recovery Agreement Valued in Excess of $277 Million with the Estate of Stanley Chais

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 SIPA TRUSTEE, CALIFORNIA ATTORNEY GENERAL,
AND PRIVATE LITIGANTS
REACH RECOVERY AGREEMENT VALUED IN EXCESS OF
$277 MILLION
WITH THE ESTATE OF STANLEY CHAIS
AND OTHER CHAIS-RELATED DEFENDANTS

Immediate benefit to BLMIS Customer Fund Approximately $232 million

NEW YORK, NEW YORK and WASHINGTON, DC – Friday, October 28, 2016 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), today filed a motion in the United States Bankruptcy Court for the Southern District of New York seeking the Court’s approval of a global settlement with the defendants in Picard v. the Estate of Stanley Chais, et al. (“Chais-related Defendants”). The motion also seeks Court approval for the creation of a California Restitution Fund, which is the result of the efforts of California Attorney General Kamala D. Harris, and the settlement of private California state court litigation against the Chais-related Defendants.

The settlement agreement will ultimately deliver a benefit of more than $277 million to the victims of the Madoff Ponzi scheme. The agreement was made with the Stanley Chais estate, Chais’s widow, and a number of Chais family members, investment funds, trusts, companies, and other entities associated with Chais. The approval hearing for this agreement has been set for Tuesday, November 22, 2016 at 10:00 a.m.

Under the terms of the agreement, as soon as a final, unappealable order is entered by the Court, the BLMIS Customer Fund will receive a payment of at least $232 million in cash, as well as the assignment of other non-liquid assets which will be liquidated over time and which are valued at approximately $30.7 million.

Also under the agreement, a California State Restitution Fund that will total approximately $15 million will be established, to be supervised by the California Attorney General’s office, for the administration and payment of claims made by investors in certain Chais-related partnerships related to the state.

“This outstanding outcome is the result of four years of negotiation and mediation which addressed and resolved myriad complex legal issues and underscores the tenacity of the teams who continue to deliver additional recoveries for Madoff’s victims,” said Tracy Cole, a BakerHostetler partner and lead counsel on the Chais matter. “The agreement confers a significant, immediate benefit to the BLMIS Customer Fund, avoids lengthy, burdensome, and expensive litigation, and represents a fair and reasonable compromise between the SIPA Trustee and the defendants.”

“The agreement announced today brings total recoveries to date to more than $11.4 billion,” said Stephen P. Harbeck, President and Chief Executive Officer of SIPC. “The work of the SIPA Trustee and his team continues to drive results toward our shared goal of maximizing the return of stolen funds to eligible victims as quickly as possible.”

“These milestones are a reminder of the importance of SIPC’s support in liquidations such as BLMIS,” Mr. Picard added. “All administrative costs of the Madoff Recovery Initiative are funded by SIPC, meaning that 100 percent of recoveries are returned to the legitimate owners. None of the costs to right the wrongs done by Madoff are borne by his victims.”

To date, the SIPA Trustee has distributed approximately $9.467 billion, which includes more than $836.6 million in committed advances from SIPC. Once the agreement is approved by the Bankruptcy Court and a final unappealable order entered, the total BLMIS Customer Fund recoveries and agreements to recover will then total approximately $11.459 billion, or more than 65 percent of the principal estimated to have been lost by Madoff’s defrauded customers with allowed claims and those claims that are deemed determined pending the outcome of litigation or future settlements.

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. 09-01182 (SMB). In addition, the motion – as well as further information on recoveries to date, other legal proceedings, further settlements, and general information – can be found on the SIPA Trustee’s website: www.madofftrustee.com.

In addition to Ms. Cole, 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 Thomas L. Long, M. Elizabeth Howe and Lauren P. Berglin, who assisted with the work on the global settlement agreement.

Madoff SIPA Trustee, California Attorney General, and Private Litigants Reach Recovery Agreement Valued in Excess of $277 Million with the Estate of Stanley Chais

July 25, 2016
Statement Regarding Twenty-First 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 Thursday, July 21, 2016, the SIPA Trustee and his Counsel at BakerHostetler filed their 21st Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS between December 1, 2015 through March 31, 2016.

• The Application seeks approval of fees, representing more than 83,684 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $417 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 $3,878,370.01. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,668,301.20 for the four-month period, as well as expenses in the amount of $194,544.62.

• 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 $34,905330.09 (of which $31,414,797.08 is to be paid currently and $3,490,533.01 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 20,684 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, $199,570.77 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort. In addition, a $10,508,477.18 portion of the overall holdback amount of $31,843,870.23 was requested from the Bankruptcy Court after both consent and approval of the Securities Investor Protection Corporation (SIPC).

As noted in the fee application:

• During the compensation period of December 1, 2015 through March 31, 2016, without the need for protracted litigation, the SIPA Trustee settled 71 cases for $212,358,268.50.

• As of the end of the compensation period (March 31, 2016), the SIPA Trustee dismissed 217 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 Thursday, July 18, 2016, the SIPA Trustee has recovered or entered into agreements to recover more than $11.198 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 SIPC, which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

To date, the SIPA Trustee has distributed approximately $9.467 billion to BLMIS customers with allowed claims, which includes a total of $8.801 billion in distributions from the Customer Fund and $665.8 million in net funds advanced by SIPC.

The first pro rata interim distribution commenced on October 5, 2011, and to date equals approximately $685.3 million. A second pro rata interim distribution commenced on September 19, 2012, and to date equals approximately $4.978 billon. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $696.3 million. The fourth pro rata distribution commenced on May 5, 2014 and the SIPA Trustee has distributed approximately $468.2 million. In the fifth pro rata distribution, which commenced on February 6, 2015, he has distributed approximately $403.4 million. In the sixth pro rata distribution, which commenced on December 4, 2015, the SIPA Trustee has distributed approximately $1.209 billion. The seventh pro rata distribution commenced on June 30, 2016, and to date equals approximately $190.2 billion.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed more than $836.6 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received $170.8 million in reimbursement.

The Bankruptcy Court hearing for approval of the 21st Fee Application has been scheduled for Wednesday, September 7, 2016 at 10 a.m.

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

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

Statement Regarding Twenty-First Fee Application

June 30, 2016
Press Release: Seventh Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals Approximately $190.2 Million

SEVENTH PRO RATA INTERIM DISTRIBUTION OF RECOVERED FUNDS
TO MADOFF CLAIMS HOLDERS COMMENCES;
TOTALS APPROXIMATELY $190.2 MILLION

Aggregate Distributions Total Approximately $9.47 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – June 30, 2016 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), said that the seventh pro rata interim distribution from the Customer Fund to eligible BLMIS customers commenced today, Thursday, June 30, 2016.

The SIPA Trustee is distributing approximately $190.247 million on a pro rata basis to BLMIS account holders with allowed claims, bringing the aggregate amount distributed to eligible claimants to approximately $9.47 billion, which includes approximately $836.6 million in committed advances from the Securities Investor Protection Corporation (SIPC). The seventh distribution represents 1.305 percent of each claim dollar and will be paid on claims relating to 972 BLMIS accounts to record holders of allowed claims as of June 15, 2016. When combined with the prior six distributions, in aggregate, at least 58.369 percent of each customer’s allowed claim amount will be paid, unless that claim has been fully satisfied.

“I remain optimistic that the Trustee and his team, together with SIPC, will achieve additional milestone distributions like the one announced today,” said SIPC President and CEO Stephen P. Harbeck. “SIPC’s support of the liquidation continues, with our shared goal of maximizing the return of stolen funds to eligible victims as quickly as possible.”
“I’d also like to underscore the fact that all administrative costs of the Madoff Recovery Initiative are funded by SIPC, meaning that 100 percent of recoveries are returned to the legitimate owners and none of the costs to right the wrongs done by Madoff are borne by his victims.”

The seventh interim pro rata distribution was reached as a result of the successful negotiations of the SIPA Trustee and his legal teams – led by his Chief Counsel, David J. Sheehan – over the six months between November 2015 and May 2016 with a number of parties including 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.

The average payment for an allowed claim issued in the seventh distribution will total $195,727.68. The smallest payment totals $136.69 and the largest payment is $31,942,323.51. In addition, SIPC will be reimbursed for its advances to accounts that the seventh interim distribution has fully satisfied.

Currently, the SIPA Trustee has allowed 2,597 claims related to 2,249 BLMIS accounts. Of these, 1,296 accounts will now be fully satisfied following the seventh interim distribution. All allowed claims totaling $1,200,024.90 or less will be fully satisfied after the distribution.

To date, the SIPA Trustee has recovered or reached agreements to recover approximately $11.168 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 as of June 30, 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. Any allowed claim would become eligible for all pro rata distributions to date and could add billions of dollars to the total value of allowed claims, currently $15.08 billion. For this potential scenario, the SIPA Trustee has to date reserved approximately $1.934 billion.

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

Messrs. Harbeck and Picard would like to thank the SIPA Trustee’s Chief Counsel David Sheehan and BakerHostetler attorneys Seanna Brown and Heather Wlodek, who worked on the seventh 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 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: Seventh Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals Approximately $190.2 Million

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