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Madoff Victims To Start Receiving Relief

From the Investment Fraud Blawg

The Securities Investor Protection Corporation (SIPC) has announced that it has committed more than $61 million to victims of Bernard L. Madoff Investment Securities LLC. The SIPC has mailed letters to 125 claimants in the SIPA liquidation proceedings. In total, there have been 8,848 customer claims filed.

The SIPC has also announced that it anticipates it will have more than $100 million by Memorial Day. The news release also stated the following recent developments:

  • Identification and recovery to date of a total of $1 billion in Madoff-related assets. Related proceeds will be available as “customer property” to make payments to eligible BLMIS customers.
  • The filing of lawsuits to recover $10.1 billion in fictitious profits paid out by BLMIS. These funds also would be made available as customer property in order to satisfy valid BLMIS customer claims. That total includes lawsuits filed this week naming various trust funds and partnerships run by investor Jeffry M. Picower and the Harley International hedge fund.
  • Expansion of the SIPC Fund. SIPC is committed to advancing funds immediately upon the trustee’s request. Harbeck assured claimants that SIPC will have sufficient funds to carry out this mission. The SIPC Board of Directors has authorized the reinstitution of revenue-based assessments on members of the Securities Investor Protection Corporation; and
  • The creation of a “hardship case” process. Instituted in recent days by the Trustee, this process is intended to expedite the handling of claims from individuals in financial or other distress.

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