This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

SIPC: $5.44 Billion Now Distributed To Madoff Victims

Madoff Trustee's Third Distribution Sends Approximately $506.2 Million to Customers With Allowed Claims

WASHINGTON, April 1, 2013 /PRNewswire-USNewswire/ -- With the distribution of approximately $506.2 million to victims in the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), a total of $5.44 billion will now have been distributed to BLMIS customers with allowed claims.   The Securities Investor Protection Corporation (SIPC) today applauded the hard work of Trustee Irving H. Picard and his attorneys in their continued efforts to recover and return funds to BLMIS customers.

When combined with the funds already returned to BLMIS customers from the Customer Fund and advances from SIPC, more than 50 percent of the total Madoff accounts with allowed claims will be fully satisfied following the third interim pro rata distribution. A total of 1,106 accounts will be fully satisfied following the third interim distribution out of a total of 2,178 accounts with allowed claims. 

Since December 2008, $9.32 billion has either been recovered or agreements reached to recover funds to return to BLMIS customers.  This amount is more than 53 percent of the approximately $17.5 billion in principal estimated to have been lost by BLMIS customers who filed allowed claims. The Trustee's recovery of more than $9.32 billion has been made possible through advances provided by SIPC, which is funded by the securities industry.  To date, SIPC has committed approximately $807 million to pay customer claims and over $718 million to fund the liquidation proceeding.  No monies recovered by the Trustee have been used to pay any administrative expenses.  All recoveries made by the Trustee benefit customers. 

SIPC President Stephen Harbeck said: "Thanks to the significant Tremont Funds settlement, which allocated more than $1 billion to the BLMIS Customer Fund, and additional funds recovered by Trustee Picard and his team since last fall, additional distributions continue to be made in an effort to fully satisfy as many BLMIS allowed claims as possible. We applaud the hard work Trustee Picard has undertaken to recover monies and distribute them to customers at the failed BLMIS brokerage.  His successful efforts have resulted in the ability to fully satisfy more than half of the BLMIS accounts with allowed claims, a significant achievement.  SIPC is pleased to continue to facilitate the work of the Trustee to make possible the maximum recovery and return of funds to customers. "

ABOUT SIPC

The Securities Investor Protection Corporation is the U.S. investor's first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs