STATEMENTS & PRESS RELEASES
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March 23, 2016
Statement Regarding Twentieth Fee Application

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

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

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

• The Application seeks approval of fees, representing more than 88,911 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $412 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month compensation period of approximately $4,072,566.37. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,602,448.70 for the four-month period, as well as expenses in the amount of $112,852.71.

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

• After applying the public interest discount, the total fees requested for the period were $36,653,097.33 (of which $32,987,787.60 is to be paid currently and $3,665,309.73 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 22,227 hours worked per month on the international and domestic investigations, negotiations and litigation resulting from the largest financial fraud of its kind in U.S. history. In addition, $255,238.19 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort.

As noted in the fee application:

• During the compensation period of August 1, 2015 through November 30, 2015, without the need for protracted litigation, the SIPA Trustee settled 73 cases for $245.75 million.

• As of the end of the compensation period (November 30, 2015), the Trustee dismissed 210 Hardship program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

As of Wednesday, March 23, 2016, the SIPA Trustee has recovered or entered into agreements to recover more than $11.123 billion, representing more than 63 percent of the estimated $17.5 billion in principal lost in the Ponzi scheme by BLMIS customers who filed claims. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by the Securities Investor Protection Corporation (SIPC), which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

To date, the SIPA Trustee has distributed approximately $9.277 billion to BLMIS customers with allowed claims, which includes a total of $8.604 billion in distributions from the Customer Fund and $673 million in net funds advanced by SIPC.

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

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed more than $836.5 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received $163.5 million in reimbursement.

The Bankruptcy Court hearing for approval of the 20th Fee Application has been scheduled for Wednesday, April 27, 2016 at 10 a.m.

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

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

Statement Regarding Twentieth Fee Application

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

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

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

Aggregate Distributions to Date Total Approximately $9.16 Billion

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

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

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

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

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

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

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

To date, the SIPA Trustee has recovered or reached agreements to recover more than $10.91 billion since his appointment in December 2008. These recoveries exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollar value and percentage of stolen funds recovered. Ultimately, 100 percent of the SIPA Trustee’s recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

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

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

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

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

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

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

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

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

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

November 23, 2015
Statement Regarding Nineteenth Fee Application

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

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

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

• The Application seeks approval of fees, representing more than 100,137 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $412 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month compensation period of approximately $4,588,000. In addition to the public interest discount, the SIPA Trustee and BakerHostetler also adjusted fees by writing off an additional $1,204,171 for the four-month period, as well as expenses in the amount of $155,459.

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

• After applying the public interest discount, the total fees requested for the period were $41,292,007 (of which $37,162,806 is to be paid currently and $4,129,200 is to be held back through the conclusion of the liquidation period or until further order by the Court), representing an average of approximately 25,034 hours worked per month on the international and domestic investigations, negotiations and litigation resulting from the largest financial fraud of its kind in U.S. history. In addition, $315,058 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort.

As noted in the fee application:

• During the compensation period of April 1, 2015 through July 31, 2015, without the need for protracted litigation, the SIPA Trustee settled fifty five cases for $183.8 million.

• As of the end of the compensation period (July 31, 2015), the Trustee dismissed 210 Hardship program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

As of November 23, 2015, the SIPA Trustee has recovered or entered into agreements to recover more than $10.911 billion, representing more than 62 percent of the estimated $17.5 billion in principal lost in the Ponzi scheme by BLMIS customers who filed claims. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by the Securities Investor Protection Corporation (SIPC), which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

To date, the SIPA Trustee has distributed approximately $7.960 billion to BLMIS customers with allowed claims, which includes a total of $7.255 billion in distributions from the Customer Fund and $704.9 million in net funds advanced by SIPC.

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

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. As of November 23, 2015, SIPC has committed more than $830.2 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received $125.3 million in reimbursement.

The Bankruptcy Court hearing for approval of the 19th Fee Application has been scheduled for December 17, 2015 at 10 a.m.

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

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

Statement Regarding Nineteenth Fee Application

November 18, 2015
Statement Regarding Bankruptcy Court Approval of Sixth Interim Pro Rata Distribution

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

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

The United States Bankruptcy Court for the Southern District of New York today approved the SIPA Trustee’s request for an allocation of $1.5 billion in recoveries to the BLMIS Customer Fund and has authorized the SIPA Trustee to proceed with the sixth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

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

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

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

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

Statement Regarding Bankruptcy Court Approval of Sixth Interim Pro Rata Distribution

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

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

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

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

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

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

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

# # #

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

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

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

MADOFF TRUSTEE REQUESTS RELEASE OF $1.5 BILLION
FROM CUSTOMER FUND

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

Nearly 57 Percent of Losses Will Be Returned to Customers

NEW YORK, NEW YORK and WASHINGTON, DC – October 20, 2015 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a supplemental motion today in the United States Bankruptcy Court for the Southern District of New York seeking approval for an allocation of recoveries to the BLMIS Customer Fund and an authorization for a sixth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims. A hearing has been scheduled for Wednesday, November 18, 2015 at 10:00 a.m.

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

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

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

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

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

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

As of October 20, 2015, the SIPA Trustee has recovered or reached agreements to recover approximately $10.9 billion since his appointment in December 2008. These outcomes exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollars and percentage of stolen funds recovered.

Ultimately, 100 percent of the SIPA Trustee’s recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims. Prior distributions as of October 20, 2015 are as follows:

• The first pro rata interim distribution, which commenced on October 5, 2011, has distributed approximately $675.3 million, representing 4.602 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The second pro rata interim distribution, which commenced on September 19, 2012, has distributed approximately $4.906 billion, representing 33.556 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The third pro rata interim distribution, which commenced on March 29, 2013, has distributed approximately $686.1 million, representing 4.721 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

• The fourth pro rata interim distribution, which commenced on May 5, 2014, has distributed approximately $461.4 million, representing 3.180 percent of each individual account, unless the claim is fully satisfied.

• The fifth pro rata interim distribution, which commenced on February 6, 2015, has distributed approximately $397.5 million, representing 2.743 percent of each individual account, unless the claim is fully satisfied.

There are 109 deemed determined claims still subject to litigation. Once litigation is resolved or settlements reached, these claims may be allowed and would therefore become eligible for all pro rata distributions to date. For that potential scenario, as of October 20, 2015, the SIPA Trustee has reserved approximately $1.706 billion. The ultimate amount of additional allowed claims depends on the outcome of litigation or negotiation and could add billions of dollars to the total amount of allowed claims.

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

Upon approval, record holders of allowed claims as of November 18, 2015 will be eligible to receive payments from the sixth interim distribution.

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

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

 

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

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

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

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

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

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

The reserve was required due to ongoing litigation of the “time-based damages” issue, in which claimants asserted that they were entitled to an inflation or interest adjustment on their claims. On February 20, 2015, the Second Circuit affirmed that claimants in the SIPA liquidation of BLMIS are not entitled to any interest or inflation adjustments on money deposited at BLMIS.

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

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

July 21, 2015
Statement regarding SIPA Trustee’s Notice of Adjournment of July 29 Sixth Interim Distribution Motion Approval Hearing

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:

On July 21, 2015, the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) filed a notice of adjournment of the hearing – which was scheduled for July 29, 2015 – for approval of the sixth interim distribution motion. The notice was filed with the United States Bankruptcy Court for the Southern District of New York.

The hearing has been adjourned because certain BLMIS claimants have filed a petition with the Supreme Court of the United States seeking a writ of certiorari to review the decision by the United States Court of Appeals for the Second Circuit regarding “time-based damages.” In this decision, issued on February 20, 2015, the Second Circuit had affirmed that claimants in the SIPA liquidation of BLMIS are not entitled to time-based damages (such as interest or inflation adjustments) on money deposited at BLMIS.

In the sixth pro rata interim distribution motion, filed April 15, 2015, the SIPA Trustee sought the release of $1.249 billion of the $1.449 billion held in reserve under a September 2012 Bankruptcy Court order, with $904 million available for immediate distribution to customers with allowed claims. The hearing for approval of the sixth interim distribution motion will not be rescheduled until such time as the Supreme Court resolves the petition for certiorari and the time-based damages issue reaches a final, unappealable conclusion.

Statement regarding SIPA Trustee’s Notice of Adjournment of July 29 Sixth Interim Distribution Motion Approval Hearing

June 22, 2015
Statement Regarding the June 22, 2015 U.S. Supreme Court Ruling

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 SIPA Trustee and his Counsel are aware of and respect the decision of the Supreme Court. Approximately $5 billion of potential recoveries still remain and the SIPA Trustee and his Counsel continue to pursue these amounts in the Bankruptcy Court.
___________________________________________________________________________________________________________________________

For a more detailed explanation of the potential recoverable amount of $5 billion, please see the letter form Chief Counsel David Sheehan on the SIPA Trustee’s website: http://www.madofftrustee.com/statements-counsel-33.html#564. The key paragraphs are the 7th and 8th:

Current law permits the SIPA Trustee to recover fictitious profits – net amounts withdrawn from BLMIS in excess of principal invested – for the two-year period preceding the liquidation, from December 2006 to December 2008. Fictitious profits are comprised of the principal investments of other customers, and the SIPA Trustee has a responsibility to recover these funds, place them in the Customer Fund, and distribute the recoveries to eligible customers of BLMIS who have not yet recovered the initial principal they entrusted to Madoff. The current two-year total sought by the SIPA Trustee under this category is approximately $1.6 billion.

There are also cases where the SIPA Trustee alleges that BLMIS customers knew or should have known of fraud at BLMIS. These cases involve feeder funds and other sophisticated investors who claimed to have conducted due diligence on BLMIS. Current law permits the SIPA Trustee, in these cases, to pursue principal deposited in BLMIS for the two years prior to the liquidation in addition to fictitious profits. For these cases, the SIPA Trustee is seeking approximately $3.7 billion.

Statement Regarding the June 22, 2015 U.S. Supreme Court Ruling

June 19, 2015
Press Release: Madoff Trustee Reaches Recovery Agreement of $140 Million with Feeder Fund Plaza Investments International & Notz, Stucki Management (Bermuda) Limited

Press release from the offices of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC and the Securities Investor Protection Corporation (SIPC)

MADOFF TRUSTEE REACHES RECOVERY AGREEMENT OF $140 MILLION
WITH FEEDER FUND PLAZA INVESTMENTS INTERNATIONAL &
NOTZ, STUCKI MANAGEMENT (BERMUDA) LIMITED

TOTAL BLMIS CUSTOMER FUND RECOVERIES & AGREEMENTS WILL NOW BE MORE THAN $10.874 BILLION

NEW YORK, NEW YORK and WASHINGTON, D.C. – June 19, 2015 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), and the Securities Investor Protection Corporation (SIPC) announced that the SIPA Trustee filed a motion today in the United States Bankruptcy Court for the Southern District of New York seeking approval of a settlement agreement with Plaza Investments International Limited and Notz, Stucki Management (Bermuda) Limited (collectively, “Plaza”).

Under the terms of the agreement, the settlement with Plaza will immediately benefit the BLMIS Customer Fund by $140 million. This payment by Plaza represents approximately 60 percent of the amount transferred from BLMIS to Plaza during the six-year period prior to the BLMIS liquidation filing and also includes 100 percent of the preference and transfers from BLMIS to the Plaza defendants that occurred within two years of the BLMIS liquidation filing. The approval hearing has been set for July 29, 2015 at 10:00 a.m.

As of the approval of the settlement, Plaza will be entitled to an allowed claim of approximately $405 million and entitled to receive catch-up payments of approximately $198 million based on the five pro rata interim distributions made in the SIPA liquidation of BLMIS to date, plus the $500,000 SIPC advance. Plaza will use the first $140 million of the catch-up payments to pay the amount it owes to the BLMIS Customer Fund. Plaza will now be entitled to further pro rata interim distributions along with all other BLMIS customers with allowed claims not yet fully satisfied.

SIPC President and CEO Stephen P. Harbeck said, “These settlements will be a substantial addition to the SIPA Trustee's fund of ‘customer property.’ It shows the critical importance of powers given by the Bankruptcy Code and the Securities Investor Protection Act to the SIPA Trustee to recover assets for the investors who lost their funds in this financial tragedy. These settlements are a continuation of the SIPA Trustee's efforts to fully satisfy as many BLMIS allowed claims as possible.”

Harbeck added, “To that end, SIPC pays for all of the administrative expenses necessary to recover assets for distribution in the Madoff proceeding. All of the funds recovered are distributed to customers. No customer money is used for administrative expenses.”

Elizabeth Scully, BakerHostetler lead counsel for the Plaza matter on behalf of the SIPA Trustee stated, “The SIPA Trustee’s motion asks that the agreement be approved because it confers significant benefits not only to the BLMIS Customer Fund but also to the investors of Plaza. As with all settlements in the BLMIS liquidation, the first priority is to ensure that every account in the SIPA liquidation first be brought onto a level playing field so that those entitled to Customer Fund assets may receive fair and orderly distributions according to the law. With Court approval, the recovered money from Plaza will be combined with available recoveries in the Customer Fund and distributed on a pro rata basis to all BLMIS customers with allowed claims. To date, the SIPA Trustee has allowed 2,557 claims related to 2,220 BLMIS accounts; of these accounts, 1,162 accounts – or all allowed claims totaling $976,592 or less – have been fully satisfied.”

One hundred percent of the SIPA Trustee's recoveries will be allocated to the BLMIS Customer Fund for distribution to customers with allowed claims. To date, the SIPA Trustee has reached recoveries and agreements to recover approximately $10.734 billion and has distributed more than $7.576 billion, which includes $825.5 million in committed advances from SIPC. Once this agreement and other pending agreements are approved by the Bankruptcy Court, the total BLMIS Customer Fund recoveries will total $10.874 billion.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid in full by SIPC, which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from the recoveries obtained by the SIPA Trustee for the benefit of the BLMIS Customer Fund.

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. 10-04284 (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. Scully, Mr. Harbeck and the SIPA Trustee Irving Picard would like to thank the Securities Investor Protection Corporation’s Kevin Bell and David Sheehan, Chief Counsel to the SIPA Trustee as well as Mark Kornfeld and Tom Long, BakerHostetler attorneys who assisted with the work on this settlement.

About SIPC
The Securities Investor Protection Corporation (http://www.sipc.org) is the U.S. investor's first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.

The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims for customer cash and/or securities held in custody with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2014, SIPC has advanced $ 2.3 billion in order to make possible the recovery of $134 billion in assets for an estimated 773,000 investors.

Press Release: Madoff Trustee Reaches Recovery Agreement of $140 Million with Feeder Fund Plaza Investments International & Notz, Stucki Management (Bermuda) Limited