STATEMENTS & PRESS RELEASES
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January 10, 2023
Statement Regarding Bankruptcy Court Approval of Fourteenth 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:

NEW YORK, NEW YORK – January 10, 2023 – The United States Bankruptcy Court for the Southern District of New York today approved the SIPA Trustee’s request for an allocation to the BLMIS Customer Fund and authorized the SIPA Trustee to proceed with the fourteenth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As previously announced on December 9, 2022, with today’s court approval, the SIPA Trustee will allocate more than $44 million to the BLMIS Customer Fund, with more than $33 million available for immediate distribution to customers with allowed claims. The distribution includes the release of a $14.5 million general reserve that was previously allocated to the Customer Fund and held for unknown contingencies.

This fourteenth pro rata interim distribution, when combined with the prior thirteen distributions, will equal at least 70.630 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 $14.36 billion, which includes advances committed by the Securities Investor Protection Corporation (SIPC). All allowed customer claims up to $1,701,900.07 will be fully satisfied after the distribution. The distribution is expected to commence by late February.

The Fourteenth 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 (CGM). 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 9, 2022 Press Release: https://www.madofftrustee.com/document/news/001219-press-release-fourteenth-allocation-and-distribution-vff.pdf

Statement Regarding Bankruptcy Court Approval of Fourteenth Pro Rata Interim Distribution

December 09, 2022
Madoff Trustee Requests Allocation of More Than $44 Million to Customer Fund and Court Approval to Distribute More Than $33 Million to BLMIS Customers With Allowed Claims

Madoff Trustee Requests Allocation of More Than $44 Million to Customer Fund and Court Approval to Distribute More Than $33 Million to BLMIS Customers With Allowed Claims

Fourteenth Pro Rata Interim Distribution Will Bring Aggregate Customer Payout in Madoff Liquidation to More Than $14.36 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – December 9, 2022 – 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 $44 million in recoveries to the BLMIS Customer Fund and an authorization for a fourteenth pro rata interim distribution of more than $33 million from the Customer Fund to BLMIS customers with allowed claims. A hearing on the motion has been scheduled for Wednesday, January 18, 2023 at 10:00 a.m. EST.

The proposed fourteenth pro rata interim distribution is the result of approximately $14.35 million in settlements and recoveries achieved by the SIPA Trustee and the legal teams since the last interim distribution in February 2022. The proposed distribution includes the release of a $14.5 million general reserve that was previously allocated to the Customer Fund and held for unknown contingencies.

“SIPC is committed to working with and supporting the SIPA Trustee and his team as they continue to pursue the recovery of stolen customer funds within the judicial system,” said Josephine Wang, President and Chief Executive Officer of the Securities Investor Protection Corporation (SIPC). “On behalf of SIPC, I would like to thank the SIPA Trustee and the dedicated SIPC and Trustee teams for their tireless efforts this year. We look forward to more victories and recoveries in 2023 for the benefit of customers.”

“We are proud to continue our quest to recover additional funds and return them to defrauded claimants,” said Mr. Picard. “I am grateful for the commitment of our legal team, led by David Sheehan, for realizing more recovered funds than in any other case of its kind, and to SIPC for its support in making this happen. With this pending distribution we will have returned more than 70 percent of the stolen funds to BLMIS customers with allowed claims.”

“This has been a strong year for us on the judicial front,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “The courts continue to reject the arguments by defendants that they should be allowed to retain funds that belong to other Madoff victims. Many of these cases involve sophisticated institutions that failed to meet their fiduciary responsibilities, thereby allowing the fraud to go undiscovered for years. I am hopeful that we will be able to hold these institutions accountable and there will be additional recoveries in the coming years.”

Fourteenth Distribution Will Bring Total Amount Restored to More Than $14.36 Billion

When combined with the prior thirteen distributions, the fourteenth distribution will equal 70.630% 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 $14.36 billion, including approximately $849.9 million in advances committed by SIPC.

As of October 31, 2022, the SIPA Trustee has recovered or reached agreements to recover approximately $14.541 billion. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollars and percentage of stolen funds recovered.

The proposed distribution will be paid on claims relating to 780 BLMIS accounts and represents approximately 0.178% of their net equity claims, with an average payment amount of $42,679.08. When combined with the previous thirteen distributions and $849.9 million in advances committed by SIPC, 1,514 accounts with an allowed claim amount of up to $1,701,900.07 will be fully satisfied following the fourteenth interim distribution.

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 Fourteenth 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 (CGM). 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 fourteenth 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 Michael Post, Kevin H. Bell, Nathanael Kelley, Nicholas Hallenbeck, and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.

 

Madoff Trustee Requests Allocation of More Than $44 Million to Customer Fund and Court Approval to Distribute More Than $33 Million to BLMIS Customers With Allowed Claims

October 31, 2022
Statement Regarding Fortieth 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, October 31, 2022, the SIPA Trustee and his Counsel at BakerHostetler filed the 40th 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, 2022 through July 31, 2022.

• The Application seeks approval of fees, representing approximately 70,874.10 hours of professional and paraprofessional services, which were billed at an average public interest discounted rate of approximately $511.04 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 $4,024,390.31. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $2,100,749.20 (not including the 10 percent public interest discount) and wrote off expenses customarily charged to other clients in the amount of $49,868.02.

• 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 $36,219,512.79 (of which $32,597,561.51 is to be paid currently and $3,621,951.28 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $286,456.71 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, 2022 through July 31, 2022, without the need for protracted litigation, the SIPA Trustee settled seven cases for $6,797,245.88. The SIPA Trustee entered into settlements subsequent to the Compensation Period that have and will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (July 31, 2022), the SIPA Trustee dismissed 284 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 $14.538 billion through September 30, 2022. 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 $14.331 billion to BLMIS customers with allowed claims through September 30, 2022, which includes $849.9 million in funds committed to be advanced by SIPC. All allowed customer claims up to approximately $1.692 million have been fully satisfied.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $888.2 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $6.458 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $904.4 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $608.4 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $524.3 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.573 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $247.7 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $327.7 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $719.3 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $514.2 million. The eleventh pro rata interim distribution commenced on February 28, 2020, and the SIPA Trustee has distributed approximately $370.8 million. The twelfth pro rata interim distribution commenced on February 26, 2021, and the SIPA Trustee has distributed approximately $232.4 million. The thirteenth pro rata interim distribution commenced on February 25, 2022, and the SIPA Trustee has distributed approximately $113 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 $849.9 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 $252.6 million in reimbursement.

The Bankruptcy Court hearing for approval of the 40th Fee Application has been scheduled for December 14, 2022 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 Fortieth Fee Application

September 26, 2022
Statement Regarding District Court Judgment in RAR Entrepreneurial Fund Case

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) on Picard v. RAR Entrepreneurial Fund Ltd.

Attributable to Lan Hoang and Brian W. Song, counsel to Irving H. Picard, SIPA Trustee for the liquidation of BLMIS

A jury confirmed on March 7, 2022 what we have known from the time Bernard Madoff’s fraud was uncovered; namely that there was never any trading by Madoff for his investment advisory customers. There were no purchases or sales of securities, or any income from securities reported for customers.

Madoff ran a pure Ponzi Scheme and funds paid out to customers came solely from the deposits made by other BLMIS customers. RAR was a partnership that invested with Madoff and, while it did nothing improper or illegal, it did withdraw more funds than it deposited. The jury’s decision requires that they return these excess withdrawals to the SIPA Trustee, so they can be added to the BLMIS Customer Fund for distribution to victims with approved claims who have yet to receive back what they deposited with BLMIS.

Upon the Second Circuit’s affirmation of prejudgment interest in a nearly identical case, the District Court supplemented the verdict to include prejudgment interest, with judgment entered on September 26, 2022 in favor of the SIPA Trustee and against RAR in the amount of $12,800,065.00, plus 4 percent prejudgment interest in the amount of $6,067,230.81, for a total sum of $18,867,295.81.

Statement Regarding District Court Judgment in RAR Entrepreneurial Fund Case

September 20, 2022
Statement Regarding Second Circuit Decision in JABA Case

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

Attributable to Amy E. Vanderwal, counsel to Irving H. Picard, SIPA Trustee for the liquidation of BLMIS

Today’s decision by the Second Circuit in favor of the SIPA Trustee reaffirms transfers of fictitious profits must be returned to the Trustee for distribution to customers who have not yet recovered their principal. The Court joined those below it in rejecting arguments that a change in Madoff’s corporate structure in 2001 affected the ability of the Trustee to recover these transfers. Madoff’s broker-dealer operated continuously throughout its existence with one SEC registration and as a member of SIPC. The Second Circuit confirmed that Appellants’ reliance on arguments regarding inconsistent paperwork at BLMIS did not provide grounds for a trial and summary judgment was properly awarded to the Trustee. The Court concluded that the district court did not abuse its discretion in granting the Trustee prejudgment interest on the judgment, finding that Appellants had benefitted from other customers’ stolen money for over a decade.

As a result of this decision, the judgment entered by Judge Koeltl in the amount of $2,925,000 plus 4 percent prejudgment interest was affirmed and these funds, once returned to the estate, will be available for distribution.

Statement Regarding Second Circuit Decision in JABA Case

July 01, 2022
Statement Regarding Thirty-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, July 1, 2022, the SIPA Trustee and his Counsel at BakerHostetler filed the 39th 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, 2021 through March 31, 2022.

• The Application seeks approval of fees, representing approximately 69,182.50 hours of professional and paraprofessional services, which were billed at an average public interest discounted rate of approximately $515.77 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 $3,964,712.40. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $1,688,704.60 (not including the 10 percent public interest discount) and wrote off expenses customarily charged to other clients in the amount of $50,028.57.

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

• After applying the public interest discount, the total fees requested for the period were $35,682,411.60 (of which $32,114,170.44 is to be paid currently and $3,568,241.16 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $488,259.37 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort. A $10,071,889.38 portion of the overall holdback amount of $20,143,778.76 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, 2021 through March 31, 2022, without the need for protracted litigation, the SIPA Trustee settled 5 cases for $24,368,716.43. The SIPA Trustee entered into settlements subsequent to the Compensation Period that have and will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (March 31, 2022), the SIPA Trustee dismissed 284 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 $14.532 billion through May 31, 2022. 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 $14.276 billion to BLMIS customers with allowed claims through May 31, 2022, which includes $849.9 million in funds committed to be advanced by SIPC. All allowed customer claims up to approximately $1.692 million have been fully satisfied.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $884.6 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $6.431 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $900.7 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $605.9 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $522.2 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.567 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $246.7 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $326.4 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $716.3 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $512.1 million. The eleventh pro rata interim distribution commenced on February 28, 2020, and the SIPA Trustee has distributed approximately $369.3 million. The twelfth pro rata interim distribution commenced on February 26, 2021, and the SIPA Trustee has distributed approximately $231.4 million. The thirteenth pro rata interim distribution commenced on February 25, 2022, and the SIPA Trustee has distributed approximately $112.6 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $849.9 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 $252.6 million in reimbursement.

The Bankruptcy Court hearing for approval of the 39th Fee Application has been scheduled for August 10, 2022 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-Ninth Fee Application

March 03, 2022
Statement Regarding Thirty-Eighth Fee Application

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

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

On Thursday, March 3, 2022, the SIPA Trustee and his Counsel at BakerHostetler filed the 38th 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, 2021 through November 30, 2021.

• The Application seeks approval of fees, representing approximately 62,465.20 hours of professional and paraprofessional services, which were billed at an average public interest discounted rate of approximately $523.19 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 $3,631,261.31. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $1,721,726.70 (not including the 10 percent public interest discount) and wrote off expenses customarily charged to other clients in the amount of $39,052.94.

• 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 $32,681,351.79 (of which $29,413,216.61 is to be paid currently and $3,268,135.18 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $377,823.57 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, 2021 through November 30, 2021, without the need for protracted litigation, the SIPA Trustee settled 14 cases for $12,995,583.68. The SIPA Trustee entered into settlements subsequent to the Compensation Period that have and will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (November 30, 2021), the SIPA Trustee dismissed 284 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 $14.527 billion through January 31, 2022. 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 $14.276 billion to BLMIS customers with allowed claims through February 25, 2022, which includes $849.9 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 $884.6 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $6.431 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $900.7 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $605.9 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $522.2 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.567 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $246.7 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $326.4 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $716.3 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $512.1 million. The eleventh pro rata interim distribution commenced on February 28, 2020, and the SIPA Trustee has distributed approximately $369.3 million. The twelfth pro rata interim distribution commenced on February 26, 2021, and the SIPA Trustee has distributed approximately $231.4 million. The thirteenth pro rata interim distribution commenced on February 25, 2022, and the SIPA Trustee has distributed approximately $112.6 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $849.9 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 $252.6 million in reimbursement.

The Bankruptcy Court hearing for approval of the 38th Fee Application has been scheduled for April 20, 2022 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-Eighth Fee Application

February 25, 2022
Press Release: Thirteenth Pro Rata Interim Distribution to BLMIS Claim Holders Commences; Totals Approximately $112 Million

THIRTEENTH PRO RATA INTERIM DISTRIBUTION OF RECOVERED FUNDS TO MADOFF CLAIMS HOLDERS COMMENCES;
TOTALS MORE THAN $112 MILLION

Aggregate Distributions Now Reach More Than $14.27 Billion

NEW YORK and WASHINGTON, DC – February 25, 2022 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), announced that the thirteenth pro rata interim distribution from the Customer Fund to eligible BLMIS customers commenced today.

The SIPA Trustee is distributing more than $112 million on a pro rata basis to BLMIS account holders with allowed claims. Including today’s distribution, the aggregate amount sent to eligible BLMIS customers will total more than $14.27 billion, which includes approximately $849.9 million in advances committed by the Securities Investor Protection Corporation (SIPC). The thirteenth interim distribution represents 0.604 percent of each allowed claim and will be paid on claims relating to 791 accounts. When combined with the prior twelve distributions, in aggregate, approximately 70.452 percent of each customer’s allowed claim will be paid, unless that claim has been fully satisfied.

“SIPC continues to support and work closely with the SIPA Trustee and his legal team in their efforts to recover Madoff’s stolen funds,” said Josephine Wang, SIPC president and CEO. “The results have been extraordinary given the complexity of the case and its global scale. We are confident additional distributions will be forthcoming.”

The thirteenth pro rata interim distribution was reached as a result of settlements and litigation since the last interim distribution in February 2021.

“After more than 13 years, we continue to work diligently to secure stolen Madoff funds and, with today’s announcement, eligible BLMIS customers have now received more than 70 percent of their allowed claims,” said Mr. Picard. “I am grateful for the continued commitment of our legal team led by David Sheehan and for the ongoing support of SIPC, which has enabled us to achieve the success we have.”

“The past year was highlighted by important court decisions that will allow us to pursue additional recoveries – especially from financial institutions and sophisticated investors across the globe,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “We have also made significant progress in litigation to recover funds from subsequent transferees – investors who received stolen monies from feeder funds and other financial consolidators that invested directly with Madoff. We look forward to further recoveries and distributions.”

The average payment for an allowed claim in the thirteenth interim distribution totals $142,324.53. The smallest payment totals $94.95 and the largest payment is $14,784,033.26.

Currently, the SIPA Trustee has allowed 2,655 claims relating to 2,289 BLMIS accounts. Of these 2,289 accounts, 1,509 will be fully satisfied following the thirteenth interim distribution. All allowed customer claims up to approximately $1.692 million will be fully satisfied after the distribution.

As of January 31, 2022, and since his appointment in December 2008, the SIPA Trustee has amassed nearly $14.527 billion as a result of recoveries and settlement agreements. These recoveries exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollar value and percentage of stolen funds recovered.

Subject to Court approval, 100 percent of the SIPA Trustee’s recoveries are 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 liquidation can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Ms. Wang and Messrs. Picard and Sheehan would like to thank BakerHostetler attorneys Seanna Brown and Heather Wlodek, who worked on the thirteenth 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 Kenneth J. Caputo, Kevin H. Bell, Nathanael Kelley, Nicholas Hallenbeck, and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative.

# # #

Press Release: Thirteenth Pro Rata Interim Distribution to BLMIS Claim Holders Commences; Totals Approximately $112 Million

January 11, 2022
Statement Regarding Bankruptcy Court Approval of Thirteenth 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:

NEW YORK, NEW YORK – January 11, 2022 – The United States Bankruptcy Court for the Southern District of New York today approved the SIPA Trustee’s request for an allocation to the BLMIS Customer Fund and authorized the SIPA Trustee to proceed with the thirteenth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As previously announced on December 10, 2021, with today’s court approval, the SIPA Trustee will allocate more than $128 million to the BLMIS Customer Fund, with more than $85 million available for immediate distribution to customers with allowed claims. The distribution includes the release of $10.5 million of a general reserve of $25 million that was previously allocated to the Customer Fund and held for unknown contingencies.

This thirteenth pro rata interim distribution, when combined with the prior twelve distributions, will equal at least 70.307 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total nearly $14.25 billion, which includes advances committed by the Securities Investor Protection Corporation (SIPC). All allowed customer claims up to $1,682,000.00 will be fully satisfied after the distribution. The distribution is expected to commence by late February.

The Thirteenth 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 (CGM). 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 10, 2021 Press Release: https://www.madofftrustee.com/document/news/001143-press-release-thirteenth-allocation-and-distribution-final.pdf

Statement Regarding Bankruptcy Court Approval of Thirteenth Pro Rata Interim Distribution

December 10, 2021
Madoff Trustee Requests Allocation of More Than $128 Million to Customer Fund and Court Approval to Distribute More Than $85 Million to BLMIS Customers With Allowed Claims

MADOFF TRUSTEE REQUESTS ALLOCATION OF MORE THAN $128 MILLION TO CUSTOMER FUND AND COURT APPROVAL TO DISTRIBUTE MORE THAN $85 MILLION TO BLMIS CUSTOMERS WITH ALLOWED CLAIMS

Thirteenth Pro Rata Interim Distribution Will Bring Aggregate Customer Payout in Madoff Liquidation to Nearly $14.25 Billion


NEW YORK, NEW YORK and WASHINGTON, DC – December 10, 2021 – 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 $128 million in recoveries to the BLMIS Customer Fund and an authorization for a thirteenth pro rata interim distribution of more than $85 million from the Customer Fund to BLMIS customers with allowed claims. A hearing on the motion has been scheduled for Wednesday, January 19, 2022 at 10:00 a.m. EST.

Plans for the thirteenth pro rata interim distribution are the result of more than $128 million in settlements and recoveries achieved by the SIPA Trustee and the legal teams since the last interim distribution in February 2021. The proposed distribution includes the release of $10.5 million of a general reserve of $25 million that was previously allocated to the Customer Fund and held for unknown contingencies.

“SIPC is pleased by the continued recoveries for Madoff customers achieved through the hard work of the SIPA Trustee and his team, with the support of SIPC and its staff,” said Josephine Wang, President and Chief Executive Officer of the Securities Investor Protection Corporation (SIPC). “We look forward to additional recoveries in the future as significant court victories are won.”

“With this pending distribution we will have returned more than 70 percent of the stolen funds, far exceeding recoveries in any other case of its kind,” said Mr. Picard. “Despite Mr. Madoff’s death since our last distribution, we have remained committed to identifying and returning his stolen funds to victims of his Ponzi scheme. I thank my team led by David Sheehan for its vigorous efforts to uncover and recover funds, and we are grateful for SIPC’s continued support.”

“We’re proud of the success we’ve achieved to return more money to Madoff customers, but our work continues,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “Just this year we achieved a significant victory when the Second Circuit reversed the lower courts’ rulings related to bad faith, which we hope will open the door to potentially billions of dollars in additional recoveries.”

Thirteenth Distribution Will Bring Total Amount Restored to Nearly $14.25 Billion

When combined with the prior twelve distributions, the thirteenth distribution will equal 70.307 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total nearly $14.25 billion, including approximately $849.9 million in advances committed by SIPC.

As of October 31, 2021, the SIPA Trustee has recovered or reached agreements to recover approximately $14.497 billion. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollars and percentage of stolen funds recovered.

The proposed distribution will be paid on claims relating to 791 BLMIS accounts and represents approximately 0.459% of their net equity claims, with an average payment amount of $108,170.64. When combined with the previous twelve distributions and $849.9 million in advances committed by SIPC, 1,505 accounts with an allowed claim amount of up to $1,682,000.00 will be fully satisfied following the thirteenth interim distribution.

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 Thirteenth 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 (CGM). 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 thirteenth 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 Kenneth J. Caputo, Kevin H. Bell, Nathanael Kelley, Nicholas Hallenbeck, and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.

Madoff Trustee Requests Allocation of More Than $128 Million to Customer Fund and Court Approval to Distribute More Than $85 Million to BLMIS Customers With Allowed Claims