Madoff Victims to Receive $378 Million

Madoff victims are set to receive checks totaling $378 million from a US Justice Department fund.

The Madoff Victim Fund

The Madoff Victim Fund was a fund conceived by the Justice Department, with funds coming from settlements that were reached with a number of Bernard Madoff’s customers and his bank JPMorgan Chase & Co. The DOJ will be distributing another $378 million to victims of Madoff’s Ponzi scheme, bringing total government payouts for the case to over $2.7 billion for close to 40,000 investors worldwide, the Department said Monday.

The fund is set to return more than $4 billion to those conned by the scheme, although it’s entirely separate from another repayment process, which is being overseen by a trustee in a Manhattan federal bankruptcy court.

About $20 billion in principal and double that in fake profit were lost when Madoff’s securities firm collapsed in 2008, leaving thousands empty-handed. Irving Picard – the bankruptcy trustee, is recouping money for victims years after the case by suing investors who profited, so far recovering more than $14.3 billion, of which $13 billion has already been distributed to victims.

Bernard Madoff pleaded guilty to fraud and is serving a 150-year sentence in North Carolina.