A fund established by the Department of Justice is paying out $504.2 million to victims of the Bernie Madoff Ponzi scheme.
The money will be paid to more than 21,000 victims. It’s the second of two payments totaling nearly $1.3 billion that the Madoff Victim Fund is returning to former clients.
Another $5 billion in assets recovered by the U.S. attorney’s office is being separately paid to Madoff victims through a fund administered by the Securities Investor Protection Act trustee.
More than $4 billion in assets have been recovered as compensation for losses suffered by the collapse of Madoff’s Ponzi scheme.
Madoff’s investment organization collapsed in December 2008 when it was revealed that his customers, instead of having accounts worth in excess of $60 billion, had lost their entire initial investments of more than $17 billion.
Madoff never made any promised stock market investments but simply paid out earlier customers with money deposited by newer investors.
He was arrested, quickly plead guilty to fraud charges and was sentenced in June 2009 to 150 years in federal prison.
The Madoff Victim Fund is funded through recoveries by the U.S. attorney’s office in various criminal and civil forfeiture actions.
For more information about the fund, compensation to victims, eligibility criteria and payment information, visit madoffvictimfund.com.