Irving H Picard, SIPA trustee for the liquidation of Bernard L Madoff Investment Securities, has announced that cheques for the second pro rata interim distribution of recovered monies from the BLMIS Customer Fund to eligible customers were mailed on 19 September.
The second interim distribution, when combined with the funds already returned to BLMIS customers, fully satisfies more than 50 per cent of the total current accounts with allowed claims.
Through the second interim distribution, approximately USD2.479bn will be distributed on a pro rata basis to BLMIS accounts with allowed claims (as of record date 12 September 2012).
A total of 1,230 BLMIS accounts will receive approximately 33.556 per cent of the allowed claim amount of each individual account, unless the claim is fully satisfied. The average payment will be slightly more than USD2m, the smallest check being USD1,784.00 and the largest USD526,865,667.11. Of these 1,230 BLMIS accounts with allowed claims, 182 will now be fully satisfied during the second pro rata interim distribution. A total of 892 accounts have already been fully satisfied with the SIPC advance and the first interim distribution, bringing the total number of fully satisfied accounts to 1,074. After the second interim distribution, 1,048 accounts will be partially satisfied and entitled to participate in future interim distributions.
“The second pro rata interim distribution, combined with the USD1.146 billion already advanced or distributed to BLMIS customers with allowed claims, results in a total of approximately USD3.625bn returned to date to these victims of Bernard Madoff,” says Picard. “While this progress is extremely gratifying, we will not cease our work to continue recovering assets for the Customer Fund, and we will make additional distributions as soon as practicable.”
“In addition to recovering as much stolen money as possible for Madoff’s victims, we are also moving forward aggressively to resolve litigation and appeals which are delaying further distributions to BLMIS customers,” says David J. Sheehan, chief counsel to the SIPA Trustee. “We are confident in our positions and we look forward to putting more recovered funds back in the hands of their rightful owners in the near future.”
The first pro rata interim distribution of more than USD342.5m commenced on 5 October 2011. Eligible accounts in the first distribution received approximately 4.602 per cent of the allowed claim amount of each individual account, unless the claim was fully satisfied. Combined, the two interim distributions total approximately 38.158 per cent of the allowed claim amount of each individual account, unless the claim was fully satisfied. In addition, the SIPA Trustee has paid approximately USD803.7m in advances committed by SIPC to BLMIS customers with allowed claims.
To date, the SIPA trustee has recovered or reached agreements to recover more than USD9.147bn, representing nearly 53 per cent of the approximately USD17.3bn in principal estimated to have been lost in the Ponzi scheme by direct BLMIS customers who filed claims.