STATEMENTS & PRESS RELEASES
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February 12, 2020
Statement Regarding Madoff’s Motion for a Sentencing Reduction

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

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

On February 5, 2020, Bernard L. Madoff filed a motion with the United States District Court for the Southern District of New York for a sentencing reduction pursuant to 18 U.S.C. § 3582 and the First Step Act.

Madoff’s victims may submit their views on this motion to the Honorable Denny Chin, U.S. Circuit Judge. The Court has set a deadline of February 28, 2020. For further information, please visit the Notice To Former Bernard L. Madoff Investors on the U.S. Attorney’s Office website:

https://www.justice.gov/usao-sdny/madoff-sentence-reduction

Statement Regarding Madoff’s Motion for a Sentencing Reduction

January 08, 2020
Statement Regarding Bankruptcy Court Approval of Eleventh Pro Rata Interim Distribution

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

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

The United States Bankruptcy Court for the Southern District of New York today approved the SIPA Trustee’s request for an allocation of more than $988 million in recoveries to the BLMIS Customer Fund and has authorized the SIPA Trustee to proceed with the eleventh pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As previously announced, with today’s court approval, the SIPA Trustee will allocate more than $988 million to the BLMIS Customer Fund, with more than $332 million available for immediate distribution to customers with allowed claims. The remaining allocation will be held in reserve for claims that are deemed determined pending the resolution of litigation as well as other issues.

This eleventh pro rata interim distribution, when combined with the prior ten distributions, will equal at least 68.5 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total more than $13.89 billion, which includes advances committed by the Securities Investor Protection Corporation (SIPC). All allowed customer claims up to $1,574,852.48 will be fully satisfied after the distribution. The distribution is expected to commence by late February.

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

Link to the December 18, 2019 Press Release: https://www.madofftrustee.com/document/news/000978-press-release-eleventh-allocation-distribution.pdf

Statement Regarding Bankruptcy Court Approval of Eleventh Pro Rata Interim Distribution

December 18, 2019
Press Release: Madoff Trustee Requests Allocation of More Than $988 Million to Customer Fund and Court Approval to Distribute More Than $332 Million to BLMIS Customers with Allowed Claims

MADOFF TRUSTEE REQUESTS ALLOCATION OF MORE THAN $988 MILLION TO CUSTOMER FUND AND COURT APPROVAL TO DISTRIBUTE MORE THAN $332 MILLION TO BLMIS CUSTOMERS WITH ALLOWED CLAIMS

Eleventh Pro Rata Interim Distribution Will Bring Aggregate Customer Payout in Global Madoff Liquidation to More Than $13.89 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – December 18, 2019 – 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 more than $988 million in recoveries to the BLMIS Customer Fund and an authorization for an eleventh pro rata interim distribution of more than $332 million from the Customer Fund to BLMIS customers with allowed claims. A hearing on the motion has been scheduled for Thursday, January 9, 2020 at 10:00 a.m. EST.

“SIPC commends the SIPA Trustee and his team for their unwavering commitment to pursuing customer monies converted by Bernard Madoff,” said Josephine Wang, President and Chief Executive Officer of the Securities Investor Protection Corporation (SIPC). “Even after more than a decade, the Trustee and his team, with SIPC’s support, continues to recover significant amounts, all of which will go to BLMIS customers with allowed claims. SIPC is proud to be part of this ongoing, successful effort for the benefit of customers.”

“Our worldwide team was assembled to deliver exceptional results for the victims of Madoff’s fraud, and that is what we must continue to do,” said Mr. Picard. “Thanks to the team’s persistence and diligent work, we have restored nearly 69 percent of the money stolen through the Ponzi scheme.”

“Make no mistake, even after 11 years, we have substantial potential recoveries ahead,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “Litigation involving approximately $3.2 billion is still at stake, and approximately 223 lawsuits remain pending in the United States, involving defendants in many jurisdictions around the world. With the support of SIPC, we will continue pursuing these recoveries that rightfully belong to the customers of BLMIS.”

Eleventh Distribution Will Bring Total Amount Restored to More Than $13.89 Billion

Plans for the eleventh pro rata interim distribution are the result of more than $988 million in settlements and recoveries achieved by the SIPA Trustee and the legal teams since the last interim distribution in February 2019, most notably the $860 million settlement agreement between the SIPA Trustee and Kingate Global Fund, Ltd. and Kingate Euro Fund, Ltd., BLMIS feeder funds incorporated in the British Virgin Islands.

When combined with the prior ten distributions, the eleventh distribution will equal 68.411 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total more than $13.89 billion, including approximately $848.199 million in advances committed by SIPC.

As of October 31, 2019, the SIPA Trustee has recovered or reached agreements to recover approximately $14.294 billion. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollars and percentage of stolen funds recovered.

No funds recovered in the Madoff Recovery Initiative are used to pay costs associated with the recovery. All trustee, legal, and accounting fees, as well as administrative expenses, are paid by SIPC.

The Eleventh 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.

Ms. Wang and Messrs. Picard and Sheehan would like to thank Seanna Brown and Heather Wlodek of BakerHostetler, who worked on the eleventh 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 Kevin H. Bell, Nathanael Kelley and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.

 

Press Release: Madoff Trustee Requests Allocation of More Than $988 Million to Customer Fund and Court Approval to Distribute More Than $332 Million to BLMIS Customers with Allowed Claims

November 12, 2019
Statement Regarding Thirty-First Fee Application

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

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

On Tuesday, November 12, 2019, the SIPA Trustee and his Counsel at BakerHostetler filed their 31st Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from April 1, 2019 through July 31, 2019.

• The Application seeks approval of fees, representing approximately 72,332.90 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $455.25 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 $3,658,802.30. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $1,871,417.00 (not including the 10% public interest discount), and wrote off expenses customarily charged to other clients in the amount of $285,711.94.

• 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 $32,929,220.70 (of which $29,636,298.62 is to be paid currently and $3,292,922.08 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $578,705.53 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, 2019 through July 31, 2019, without the need for protracted litigation, the SIPA Trustee settled 7 cases for $3,838,010.00. The SIPA Trustee entered into settlements subsequent to the Compensation Period that will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (July 31, 2019), the SIPA Trustee dismissed 281 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.

The SIPA Trustee has recovered or entered into agreements to recover nearly $14.286 billion through October 31, 2019. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

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

The SIPA Trustee has distributed approximately $13.49 billion to BLMIS customers with allowed claims through October 31, 2019, which includes $847.70 million in funds committed to be advanced by SIPC.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $879.6 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $6.395 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $895.6 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $602.5 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $519.2 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.558 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $245.3 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $324.5 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $712.3 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $509.2 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $847.70 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $222.9 million in reimbursement.

The Bankruptcy Court hearing for approval of the 31st Fee Application has been scheduled for December 12, 2019 at 10 a.m.

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

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

Statement Regarding Thirty-First Fee Application

July 17, 2019
Press Release: Madoff Trustee Reaches Recovery Agreement with Kingate Funds

MADOFF TRUSTEE REACHES RECOVERY AGREEMENT
WITH KINGATE FUNDS

SETTLEMENT DELIVERS IMMEDIATE BENEFIT TO BLMIS CUSTOMER FUND OF $860 MILLION

NEW YORK, NEW YORK and WASHINGTON, DC – July 17, 2019 – 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 recovery agreement with Kingate Global Fund, Ltd. and Kingate Euro Fund, Ltd. (the “Kingate Funds”), by Paul Pretlove, Tammy Fu and John C. McKenna, in their capacity as Joint Liquidators of the Kingate Funds. An approval hearing for the agreement has been set for August 8, 2019 at 10:00 a.m.

The Kingate Funds were BLMIS feeder funds incorporated in the British Virgin Islands and were founded by Federico Ceretti and Carlo Grosso and operated through various service providers. Through this settlement, the SIPA Trustee will immediately recover $860 million for the BLMIS Customer Fund, representing 100 percent of the transfers received from BLMIS in the six years preceding the commencement of BLMIS’s SIPA proceeding and approximately 93 percent of the transfers received from BLMIS over the life of the Kingate Funds’ accounts.

“We congratulate the SIPA Trustee and his team for their success in reaching this important settlement agreement,” said Josephine Wang, President and Chief Executive Officer of SIPC. “The Kingate recovery is one of the largest in the Madoff recovery efforts by the SIPA Trustee.”

The SIPA Trustee will allow the customer claims of the Kingate Funds upon receipt of the $860 million payment. The Kingate Funds will receive a pro rata share of the catch-up distribution that will be paid to investors of the Kingate Funds.

The settlement with the Kingate Funds ensures that all the benefits go to its investors – individuals or entities that were not direct clients of Madoff but invested with BLMIS through the Kingate Funds. All distributions made by the SIPA Trustee to the Kingate Funds will be paid to the investors of the Kingate Funds, except that no payments will be made to either Messrs. Ceretti and Grosso, or to other individuals and entities associated with Messrs. Ceretti and Grosso and the Kingate Funds.

“This important settlement with one of the largest Madoff feeder funds is another significant benchmark for our recovery efforts,” said David J. Sheehan, Chief Counsel to the SIPA Trustee and BakerHostetler partner. “The structure is consistent with our dedicated approach to ensure that the benefits of these settlements go to innocent investors.”

“The Kingate settlement sets an important precedent for international recoveries,” said Michelle R. Usitalo, BakerHostetler associate. “Even as we await the outcome of the appeal of the Second Circuit’s recent decision supporting the SIPA Trustee’s position on extraterritoriality, Kingate provides a template for our team to pursue additional cross-border recoveries.”

The SIPA Trustee has recovered approximately $13.403 billion to date and distributed approximately $12.381 billion to BLMIS customers with allowed claims. SIPC has advanced a net $623 million to be used by the Trustee to satisfy customer claims, and the Trustee has distributed $11.758 billion from the 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. 09-01364 (SMB). The motion – as well as further information on recoveries to date, other legal proceedings, further settlements, and general information – can also be found on the SIPA Trustee’s website: www.madofftrustee.com.

Ms. Wang and Messrs. Picard and Sheehan would like to thank the Securities Investor Protection Corporation’s Kenneth J. Caputo, Kevin H. Bell, and Nathanael Kelley, as well as BakerHostetler attorneys Geraldine E. Ponto, Gonzalo S. Zeballos, John J. Burke, Michelle R. Usitalo, Joanna F. Wasick, and Marshall J. Mattera, SCA Creque, Browne Jacobson LLP, and Williams Barristers and Attorneys, who assisted with the work on this matter.

Press Release: Madoff Trustee Reaches Recovery Agreement with Kingate Funds

July 15, 2019
Statement Regarding Thirtieth Fee Application

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

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

On Monday, July 15, 2019, the SIPA Trustee and his Counsel at BakerHostetler filed their 30th Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from December 1, 2018 through March 31, 2019.

• The Application seeks approval of fees, representing approximately 69,306.80 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $447.42 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 $3,445,434.27. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $1,877,230.30 (not including the 10% public interest discount), and wrote off expenses customarily charged to other clients in the amount of $261,373.60.

• 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 $31,008,908.43 (of which $27,908,017.59 is to be paid currently and $3,100,890.84 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $495,036.96 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 $11,433,697.74 portion of the overall holdback amount of $22,867,395.48 was requested from the Bankruptcy Court with the consent and approval of the Securities Investor Protection Corporation (SIPC).

As noted in the Fee Application:

• During the Compensation Period of December 1, 2018 through March 31, 2019, without the need for protracted litigation, the SIPA Trustee settled 6 cases for $6,218,735.37. The SIPA Trustee entered into settlements subsequent to the Compensation Period that will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (March 31, 2019), the SIPA Trustee dismissed 277 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.

The SIPA Trustee has recovered or entered into agreements to recover nearly $13.403 billion through May 31, 2019. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

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

The SIPA Trustee has distributed approximately $12.38 billion to BLMIS customers with allowed claims through May 31, 2019, which includes $845.93 million in funds committed to be advanced by SIPC.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $803.2 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $5.8 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $817.2 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $549.7 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $473.7 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.4 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $223.6 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $295.8 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $649.1 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $463.9 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $845.93 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $222.9 million in reimbursement.

The Bankruptcy Court hearing for approval of the 30th Fee Application has been scheduled for August 28, 2019 at 10 a.m. The BakerHostetler attorneys who worked on behalf of the SIPA Trustee filing this Fee Application include David J. Sheehan, Seanna R. Brown and Heather R. Wlodek.

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

Statement Regarding Thirtieth Fee Application

March 15, 2019
Statement Regarding Twenty-Ninth Fee Application

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

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

On Friday, March 15, 2019, the SIPA Trustee and his Counsel at BakerHostetler filed their 29th Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from August 1, 2018 through November 30, 2018.

• The Application seeks approval of fees, representing approximately 77,089.40 hours of professional and paraprofessional services, which were billed at an average, public interest discounted rate of approximately $431.95 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 $3,699,903.08. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $2,056,015.30 (not including the 10% public interest discount), and wrote off expenses customarily charged to other clients in the amount of $318,349.55.

• 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 $33,299,127.72 (of which $29,969,214.95 is to be paid currently and $3,329,912.77 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $453,636.97 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, 2018 through November 30, 2018, without the need for protracted litigation, the SIPA Trustee settled 13 cases for $23,361,855.05. The SIPA Trustee entered into settlements subsequent to the Compensation Period that will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (November 30, 2018), the SIPA Trustee dismissed 277 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.

The SIPA Trustee has recovered or entered into agreements to recover over $13.355 billion through January 31, 2019. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

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

The SIPA Trustee has distributed more than $12.38 billion to BLMIS customers with allowed claims through February 22, 2019, which includes a total of $11.53 billion in distributions from the Customer Fund and $845.16 million in funds committed to be advanced by SIPC.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $803 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $5.8 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $817 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $550 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $474 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.4 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $224 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $296 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $649 million. The tenth interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $464 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $845.16 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $223 million in reimbursement.

The Bankruptcy Court hearing for approval of the 29th Fee Application has been scheduled for April 24, 2019 at 10 a.m.

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

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

Statement Regarding Twenty-Ninth Fee Application

March 01, 2019
Statement: Second Circuit Finds in Favor of SIPA Trustee on Crucial Issue of Extraterritoriality

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

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

On February 25, 2019, the United States Court of Appeals for the Second Circuit reversed a 2014 ruling that prevented the SIPA Trustee from recovering funds stolen by Madoff and subsequently transferred overseas. The decision allows the SIPA Trustee’s legal team to target approximately $4 billion that was withdrawn from BLMIS by its feeder funds, who then redistributed that money to their foreign managers and investors.

The SIPA Trustee and David J. Sheehan would like to thank the attorneys who worked on this brief including: Seanna R. Brown, Torello H. Calvani, Oren J. Warshavsky, Tracy Cole, and Catherine E. Woltering of BakerHostetler; Roy T. Englert, Jr. of Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP; Howard L. Simon of Windels, Marx, Lane & Mittendorf; Matthew B. Lunn of Young Conaway Stargatt & Taylor, LLP; and Josephine Wang, Kevin H. Bell and Nathanael Kelley of the Securities Investor Protection Corporation.

Link to the Second Circuit decision: https://www.madofftrustee.com/document/dockets/009725-banquelombardodiercertifiedopinion17-2992docket1312.pdf

Statement: Second Circuit Finds in Favor of SIPA Trustee on Crucial Issue of Extraterritoriality

February 22, 2019
Press Release: Tenth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals Approximately $464 Million

TENTH PRO RATA INTERIM DISTRIBUTION OF RECOVERED FUNDS
TO MADOFF CLAIMS HOLDERS COMMENCES;
TOTALS APPROXIMATELY $464 MILLION

Aggregate Distributions Total More Than $12 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – February 22, 2019 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), announced that the tenth pro rata interim distribution from the Customer Fund to eligible BLMIS customers commenced today.

The SIPA Trustee is distributing approximately $464 million on a pro rata basis to BLMIS account holders with allowed claims. The tenth pro rata interim distribution, when combined with the prior nine distributions, will equal 66.633 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total more than $12 billion, which includes approximately $845.16 million in advances committed by the Securities Investor Protection Corporation (SIPC). All allowed customer claims up to $1.49 million will be fully satisfied after the distribution.

“The Madoff Recovery Initiative continues to raise the bar and set new performance standards for similar efforts,” said SIPC President and CEO Stephen P. Harbeck. “With roughly two-thirds of many claim amounts satisfied, and a significant number of claims fully satisfied, the outstanding success of the Trustee and his legal team is exceptional. We look forward to further distributions.”

The tenth pro rata interim distribution was reached as a result of settlements and recoveries achieved by the SIPA Trustee, his Chief Counsel David J. Sheehan, and their legal teams since the last interim distribution in February 2018. Among the notable recoveries in 2018 are the $76.5 million payment to the BLMIS Customer Fund by Alpha Prime Fund Ltd. and the $281 million recovery from J. Ezra Merkin, Ascot Partners, L.P., Ascot Fund Limited and Gabriel Capital Corporation.

As of January 31, 2019 and since his appointment in December 2008, the SIPA Trustee has amassed nearly $13.4 billion as a result of recoveries and agreements to recover. These recoveries exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollar value and percentage of stolen funds recovered.

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

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

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

Press Release: Tenth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals Approximately $464 Million

January 22, 2019
Statement Regarding Bankruptcy Court Approval of Tenth Interim Pro Rata Distribution

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

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

The United States Bankruptcy Court for the Southern District of New York today approved the SIPA Trustee’s request for an allocation of more than $515 million in recoveries to the BLMIS Customer Fund and has authorized the SIPA Trustee to proceed with the tenth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As previously announced, with today’s court approval, the SIPA Trustee will allocate more than $515 million to the BLMIS Customer Fund, with more than $419 million available for immediate distribution to customers with allowed claims. The remaining allocation will be held in reserve for claims that are deemed determined pending the resolution of litigation as well as other issues.

This tenth pro rata interim distribution, when combined with the prior nine distributions, will equal at least 66.371percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total more than $12 billion, which includes advances committed by the Securities Investor Protection Corporation (SIPC). All allowed customer claims up to approximately $1,479,665.00 will be fully satisfied after the distribution.

The distribution is expected to commence by late February. Record holders of allowed claims as of January 22, 2019 will be eligible to receive payments from the tenth interim distribution.

The supplemental Tenth 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 11, 2018 Press Release: https://www.madofftrustee.com/statements-19.html#892

Statement Regarding Bankruptcy Court Approval of Tenth Interim Pro Rata Distribution