Madoff trustee seeks to boost payout to over $5 billion
By Jonathan Stempel | February 13, 2013 5:00 PM EST
Bernard Madoff's defrauded former customers will see the total amount of money returned to them surpass $5 billion (3.1 billion pounds) if the trustee liquidating the imprisoned swindler's former firm wins court approval to distribute another $505 million.
The trustee Irving Picard plans to seek permission from U.S. Bankruptcy Judge Burton Lifland, who oversees the liquidation of Bernard L. Madoff Investment Securities LLC, according to a posting Tuesday on the trustee's website.(http://link.reuters.com/nat85t)
If the judge grants approval for the third distribution, the amount of money advanced or distributed to customers would rise to $5.44 billion, close to half of the 2,499 claims totalling $11.05 billion that Picard has deemed "allowed".
Picard said he and his lawyers "are well aware of the need to return recovered funds as quickly as possible to those from whom the funds were stolen. They are constantly assessing all relevant issues to determine when it will be possible to make another pro rata interim distribution."
The trustee has estimated that Madoff's former customers lost $17.3 billion in the fraud, which surfaced in December 2008.
He is withholding some money from distribution because of litigation and other issues related to the liquidation.
Madoff, 74, pleaded guilty to running a Ponzi scheme in March 2009. He is serving a 150-year sentence in a North Carolina federal prison.
(Editing by Edwina Gibbs)
Most Popular Slideshows
- Gennady Golovkin Next Fight Options: Canelo Alvarez, Miguel Cotto Or Julio Cesar Chavez Jr.
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Virginia Woman Who Posted Naked Image Of Ex-BF’s New Partner 1st Person Charged Under Revenge Porn Law
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report
- Google Nexus 6 vs. iPhone 5S: 4 Important Things to Consider Before Switching to Android Lollipop
- Swedish Military Spots ‘Russian Submarine’ Off Stockholm Coast, An Alarming ‘Security Game Changer’
- Canada Raises National Terror Alert Level after Suspected Jihadist Runs Over Soldier
- Galaxy Note 4: Best Big-Screen Phone, Says Samsung; Analysts Believe Note 4 Unlikely To Beat iPhone 6 Plus [Watch Video]