The trustee who is recovering money for victims of Bernard Madoff’s Ponzi scheme, Irving Picard, announced Tuesday another round of distributions of recovered funds will soon begin.
SIPC President Stephen Harbeck said in a statement that the result is good news for investors. “The result here, fully funded by SIPC at no cost to customers, shows that the Securities Investor Protection Act functions as Congress intended, ” he said.
Nearly $11 billion of the stolen $17 billion has been returned to defrauded investors. “This is much more than anyone could have expected at the start of the case in 2008, ” He told ABC News on Tuesday.
Victims who invested $1.16 million or less will receive full compensation. Losses higher than that would be repaid at around 57 cents on the dollar, recoveries normally unheard of in a Ponzi scheme.
Picard fees are paid not by investors but by Wall Street firms through the Securities Investor Protection Corporation (SIPC).