Madoff victims get $2.48bn boost to compensation fund

Michael Bow
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COMPENSATION paid to Bernard Madoff’s fraud victims more than tripled yesterday after liquidators increased the amount set to be paid out by $2.48bn (£1.53bn).

Irving Picard, the trustee liquidating Madoff’s firm Bernard L. Madoff Investment Securities, yesterday said he had recovered $3.63bn from the firm – a boost of $2.48bn.

Madoff, 74, was sentenced to 150 years in prison in December 2008 after pleading guilty to running a giant Ponzi scheme which ripped off customers.

Cheques, ranging from $1,784 to $526.9m, are now set to be posted out to customers who lost money in the scandal.

The average payout amounts to $2.02m. The trustee had previously recovered $1.15bn until yesterday’s new figure.

Picard yesterday said a number of customers pursuing their own litigation action were delaying further distributions of funds held in reserve by the trustee.

The trustee is also appealing court decisions that have limited his claims against banks such as JP Morgan Chase that previously worked with Madoff.