Madoff Ponzi Scheme Victims Might Split $342 Million Repayment Next Year
NEW YORK (CBSNewYork/AP) -- Victims of the Bernard Madoff Ponzi scheme will split a repayment of about $342 million in January under a plan by a court trustee.
Trustee Irving H. Picard filed a motion in U.S. Bankruptcy Court Wednesday seeking approval for the eighth repayment of funds stolen by Madoff – which totaled $17.5 billion.
Of the $342 million to be distributed in the latest repayment, about $252 million will be available immediately to Madoff's victims, while another $90.7 million will be held in reserve for payouts that will be determined by pending lawsuits.
In all, the repayments to Madoff's customers over the past eight years will total about $9.72 billion, including more than $839.6 million in advances issued by the Securities Investor Protection Corporation.
A hearing on the Bankruptcy Court motion is set for Jan. 12.
Madoff, 78, was arrested in December 2008 and pleaded guilty to fraud charges three months later. His fraud cost investors nearly $20 billion over four decades.
Madoff, the one-time Nasdaq chairman, told investors in financial statements in November 2008 that the nearly $20 billion they had given him had grown in value to over $60 billion. In reality, Madoff didn't invest their money and was nearly broke.
He is now serving a 150-year prison sentence.
(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)