The estates of Bernard Madoff’s two sons will relinquish about $23 million to be paid to victims of their father’s Ponzi scheme, officials said on Tuesday.
Acting Manhattan U.S. Attorney Joon H. Kim in a statement called the settlement “one of the final pieces” in the eight-year recovery effort for Madoff’s investors.
Kim said more than $9 billion has been clawed back for people who invested with Madoff, now serving a 150-year prison sentence after pleading guilty to 11 federal felonies.
Madoff’s long-running, billion-dollar swindle included roles for his two sons.
Andrew, who died of cancer in 2014, and Mark, who hanged himself in 2010, worked for their father.
They amassed “substantial assets from their employment” with Madoff, according to the joint statement with the FBI and the Securities Investor Protection Act (SIPA) trustee.
Bernard Madoff transferred millions of dollars to his sons; they promised to repay him, issuing seven promissory notes totaling $28.15 million that obliged them to pay interest, the statement said.
One $6.5 million note was co-signed by Mark’s wife, Stephanie Mack, the statement said.
Mark Madoff’s estate is left with $1.75 million and Andrew Madoff’s estate with $2 million, according to The Associated Press.
The settlement with the sons’ estates must be approved by bankruptcy Judge Stuart M. Bernstein, who oversees the SIPA trustee’s efforts, the statement said.
FBI Assistant Director William F. Sweeney Jr. termed the settlement “a small step” toward securing justice for “so many investors” Madoff betrayed.