More money in transit for Madoff Ponzi scheme victims, total pay-out tops $18 billion



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More money in transit for Madoff Ponzi scheme victims, total pay-out tops $18 billion

The US Department of Justice (DoJ) had issued a statement on Thursday saying that the sufferers of Madoff’s Ponzi scheme would likely to receive another $568 million in claims and liabilities soon, ramping up total recoveries above a jawdropping $18 billion.

Aside from that, the DoJ statement was quoted saying that the Madoff Victim Fund, a $4.05 billion Government fund set up back in the 2013s and supervised by former US SEC (Securities and Exchange Commission) Chair Richard Breeden, would deliver pay-outs for roughly 31,000 eligible victims, while upon completion of latest disbursement, Madoff Victim Fund’s pay-outs would total to $3.7 billion to individuals and entities including schools, pension funds alongside charities among others.

Concomitantly, the US Justice Department recovered another $14.5 billion for the customers of now-defunct Bernard L. Madoff Investment Securities LLC., after court-appointed trustee had liquidated the firm in form of bankruptcy proceedings.

With latest distribution covering up to an 81.35 per cent of eligible claimants’ losses, so far, more than 42,000 individuals and entities were cleared to receive claims on Madoff’s Ponzi scheme, the Justice Department added.

Madoff Ponzi scheme victims to receive more funds soon, says DoJ

In tandem, it is believed that Bernard Madoff, the former NASDAQ chair who ran the longest Ponzi scheme in history and was arrested back in the December of 2008 after admitting his Ponzi schemes to his sons, appeared in the Wall Street as an accountant back in the 1961s at the age of 23 and had committed dozens of Ponzi schemes over more than four decades without having been detected after numerous audits following suspicious incidents.

Nevertheless, Madoff, who died on April 14 this year at the age of 82, had pleaded guilty of orchaestrating numerous Ponzi schemes since 1961 three months after being arrested and had been sentenced 150 years in prison.

In fact, Ponzi scheme has been a widely known form of fraud where an investment firm or financial entity usually continues to pay off its earlier customers’ dues through investments of newer clienteles by showing that the pay-outs have been executed via legitimate trading of assets before a deceptive announcement of bankruptcy that leads to hefty losses of newer clients.

11 criminal counts were identified against Bernard Madoff thus far.