TIMELINE

May 5, 2014
The fourth pro rata interim distribution of recoveries begins, which is approximately 3.18 percent of the allowed claims amount of each individual account, unless already fully satisfied.

April 18, 2014
The U.S. Bankruptcy Court for the Southern District of NY approves the SIPA Trustee’s allocation and distribution motion for a fourth interim distribution of approximately $351.6 million.

March 25, 2014
SIPA Trustee files motion seeking approval for an allocation to the Customer Fund and a fourth pro rata interim distribution of $349 million.

February 4, 2014
The U.S. Bankruptcy Court for the Southern District of New York approves settlement agreements with JPMorgan Chase, adding $275 million to the Customer Fund.

October 9, 2013
SIPA Trustee files petition for writ of certiorari with the United States Supreme Court seeking review of lower court decisions regarding banks and their liability in the Madoff Ponzi scheme.

September 17, 2013
The U.S. Bankruptcy Court for the Southern District of New York approves the $97.8 million settlement with the Maxam Absolute Return Fund and other related funds and entities, recovering 100 percent of the Maxam Defendants’ withdrawals from BLMIS.

September 10, 2013
The U.S. Bankruptcy Court for the Southern District of New York approves the SIPA Trustee’s motion to deny time-based damages adjustments to customer claims. The order is under appeal.

March 29, 2013
The third pro rata interim distribution of recoveries begins, which is approximately 4.721 percent of the allowed claims amount of each individual account, reaching 1,106 fully satisfied claims; the SIPA Trustee begins reimbursing SIPC for cash advances made to BLMIS customers since 2008 on accounts that are fully satisfied.

March 13, 2013
The U.S. Bankruptcy Court for the Southern District of New York approves the SIPA Trustee's allocation and distribution motion for a third pro rata interim distribution of approximately $505 million.

December 21, 2012
The U.S. Court of Appeals for the Second Circuit upholds the SIPA Trustee’s $220 million settlement with the Norman F. Levy family.

September 19, 2012
The second pro rata interim distribution of recoveries begins, which is approximately 33.5 percent of the allowed claims amount of each individual account.

August 22, 2012
Bankruptcy Court approves the SIPA Trustee’s motion for allocation and second interim distribution of approximately $2.4 billion or 33.5 percent of each allowed claim.

July 16, 2012
The deadline for further appeals of the $7.2 billion Picower forfeiture to the United States Government expires, making the forfeiture order final, and the $5 billion settlement payment is released to the SIPA Trustee.

June 25, 2012
The United States Supreme Court denies petitions for certiorari, thereby upholding net equity methodology in BLMIS liquidation.

March 26, 2012
The U.S. District Court upholds the Bankruptcy Court’s approval of the $5 billion settlement with the estate of Jeffry Picower and also upholds the injunction barring claims against the Picower estate by third parties.

March 19, 2012
A $162 million settlement agreement is reached with Sterling Equities. The settlement sum is equal to 100 percent of the fictitious profits withdrawn by the Sterling parties during the six-year period prior to the BLMIS liquidation proceeding.

December 21, 2011
A $326 million settlement with the United States of America, on behalf of the Internal Revenue Service, is approved by the United States Bankruptcy Court for the Southern District of New York.

October 5, 2011
The first pro rata interim distribution of recovered monies in the BLMIS Customer Fund commences to BLMIS customers whose claims have been allowed by the SIPA Trustee. The distribution is about 4.6 percent of losses incurred by customers with allowed net equity claims.

October 4, 2011
The United States Bankruptcy Court for the Southern District of New York approves a settlement with Mount Capital Fund, a BLMIS Feeder Fund, which returned $43.5 million to the Customer Fund.

August 16, 2011
The U.S. Court of Appeals for the Second Circuit upholds the Trustee’s definition of net equity, as applied to the Madoff Ponzi fraud, an important step forward for customers with allowed claims.

July 28, 2011
The settlement with the Tremont Group, the second-largest Madoff feeder fund network, increases the Customer Fund by $1.025 billion and facilitates future recoveries for feeder fund investors.

July 12, 2011
The Bankruptcy Court approves the SIPA Trustee's motion for the allocation of $2.6 billion to the Customer Fund for the initial pro rata interim distribution of $272 million.

June 24, 2011
An amended complaint filed against JPMC expands allegations, seeks a jury trial and increases minimum damages sought from $5.4 billion to at least $19 billion in addition to approximately $1 billion in fraudulent transfers and other claims.

May 9, 2011
A settlement with Fairfield Sentry, Madoff’s largest feeder fund, effectively increases future Customer Fund payments by nearly $1 billion and strengthens additional claims against the owners and management of the Fairfield Funds and hundreds of subsequent transferees.

May 5, 2011
The SIPA Trustee files a motion for the allocation of $2.6 billion to the Customer Fund and for the initial, pro rata, interim distribution of $272 million.

December 17, 2010
The SIPA Trustee and the Department of Justice for the United States announce a $7.2 billion settlement agreement with the estate of Jeffry Picower; $5 billion is allotted to the BLMIS Customer Fund and $2.2 billion to the government as forfeiture.

 

December 10, 2010
A RICO complaint is filed against the Medici Enterprise defendants, including Sonja Kohn, Bank Medici, and related entities, including UniCredit and Bank Austria. The action seeks to recover $19.6 billion in damages (trebled under RICO).

December 7, 2010
The SIPA Trustee announces a $550 million recovery agreement with the family of Carl Shapiro.

December 2, 2010
The SIPA Trustee and his counsel file a lawsuit against JP Morgan Chase, Madoff’s primary banker, and related entities, seeking more than $6.5 billion in fees, profits, avoidable transfers and damages.

November 26, 2010
The SIPA Trustee and his counsel file a total of 40 lawsuits against relatives of Madoff and his wife, as well as former BLMIS employees and their relatives, seeking to recover approximately $69 million in fraudulent transfers.

November 24, 2010
The SIPA Trustee and his counsel file a lawsuit against UBS AG and related entities alleging 23 counts of financial fraud and misconduct in both common law and bankruptcy causes of action, seeking the recovery of at least $2 billion.

November 1, 2010
The SIPA Trustee announces the continuation and extension of the Hardship Program to facilitate understanding of the financial circumstances of avoidance action complainants.

August 3, 2010
Vizcaya Partners Ltd. is ordered to pay back the $180 million it withdrew from BLMIS in the five months before the fraud came to light. Approximately $73 million deposited in Gibraltar is requested returned to the United States for release to help satisfy the judgment.

March 1, 2010
The Honorable Judge Burton R. Lifland of the Bankruptcy Court for the Southern District of New York upholds the SIPA Trustee’s “net equity” methodology for determining eligibility for distributions from the BLMIS Customer Fund.

January 27, 2010
The SIPA Trustee announces a $220 million agreement with Jeanne Levy-Church and Francis N. Levy, returning that amount of money to the Customer Fund.

November 13, 2009
To avoid devaluation of a major asset (an Embraer Legacy 600), Chapter 11 proceedings begin to secure full ownership of the BLMIS-owned BLM Air Charter LLC.

October 28, 2009
The total amount of SIPC advances exceeds the half-billion-dollar mark. This amount now exceeds the total of all prior SIPC advances made since SIPA was passed by Congress in 1970.

October 2, 2009
A lawsuit is filed against four Madoff family members seeking to recover approximately $200 million in customer funds allegedly diverted to the family members or spent on their behalf.

August 5, 2009
In an effort to speed the delivery of funds to BLMIS victims, SIPC agrees to pay the undisputed portion of a claim (up to $500,000) even if the customer has objected to the SIPA Trustee’s determination of the claim.

July 29, 2009
The SIPA Trustee files a lawsuit against Ruth Madoff, the wife of Bernard L. Madoff, seeking to recapture approximately $45 million in funds transferred to her or to companies in which she was an investor.

July 2, 2009
The period allowed for submitting claims closes.

June 22, 2009
Complaints are filed against Cohmad Securities Corporation seeking to recover more than $100 million in fees paid by BLMIS to the alleged feeder fund that helped channel billions of dollars and more than a thousand customers into the Madoff Ponzi scheme.

June 9, 2009
The Honorable Judge Burton R. Lifland of the Bankruptcy Court for the Southern District of New York orders the substantive consolidation of the Estate of Bernard L. Madoff into the SIPA Proceeding of Bernard L. Madoff Investment Securities LLC.

May 26, 2009
Optimal Investment Services SA agrees to settle lawsuits brought by the SIPA Trustee and pays $235 million to the Customer Fund.

May 18, 2009
The SIPA Trustee files a lawsuit seeking the return of $3.2 billion from Fairfield Greenwich Group, one of the largest alleged “feeder funds.”

April 28, 2009
Castor Pollux Securities wins the Court-approved auction of the BLMIS market-making business assets for $1 million at closing and up to $24.5 million in deferred compensation through December 2013.

January 2, 2009
The SIPA Trustee and his counsel mail more than 8,000 claims forms to victims of the fraud, with detailed instructions for filing by initial deadlines of March 4, 2009 and July 2, 2009; claims forms are also made available for download from the Internet. The Trustee publishes notices in major newspapers to victims and creditors regarding the liquidation of BLMIS.

December 20, 2008
Less than one month after the discovery of the BLMIS fraud, the SIPA Trustee and his counsel announce the recovery of $29 million from the Bank of New York in debtor funds, the first of the funds stolen through the Ponzi scheme that are recovered.

December 15, 2008
The United States District Court for the Southern District of New York appoints Irving H. Picard as SIPA Trustee for the liquidation of the Bernard L. Madoff Investment Securities brokerage firm and also appoints the law firm of Baker & Hostetler LLP as counsel to Mr. Picard.

December 11, 2008
Bernard Madoff is arrested by the FBI and criminally charged with a multi-billion-dollar securities fraud scheme The Securities and Exchange Commission files a complaint in the District Court against defendants Madoff and Bernard L. Madoff Investment Securities LLC ("BLMIS") alleging that the defendants engaged in fraud through investment advisor activities.

 

Download Timeline pdf