Irving Picard, who said last year he hoped to pay investors in Bernard Madoff’s defunct firm as much as $65 billion, has only put his hands on about $2.6 billion to actually give back to customers, according to Bloomberg.
More than three years after Madoff’s epic swindle collapsed,
Picard, the trustee responsible for liquidating the firm, has paid investors
back about $330 million, while holding about $2.3 billion in customer accounts.
About $6.4 billion that Picard has won in settlements with former Madoff
investors is being challenged in court and is unavailable for disbursement.
So far, winding down the Madoff estate has cost more than
Picard has sent to customers, with total administrative spending as of March 31
at about $554 million, including fees for Picard, his firm and consultants he
hired, according to his April 25 report. At the same time, Picard’s strategy of
filing $100 billion of lawsuits to claw back money from Madoff winners has
largely collapsed, as federal judges led by U.S. District Judge Jed Rakoff in
New York have dismissed about $90 billion of Picard’s claims…
Read more at http://www.bloomberg.com/news/2012-04-30/madoff-costs-surpass-victim-pay-offs-as-strategy-lies-in-ruins.html
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