Madoff Scheme Yields $1.2B in Restitution
This week, the federal government distributed an additional $500 million to victims of Bernie Madoff’s infamous Ponzi scheme, bringing the total restitution to over $1.2 billion. The funds were forfeited through civil asset forfeiture and distributed through the Department of Justice’s Victim Compensation Program.
According to the Justice Department, the Criminal Division’s Program Management and Training Unit within the Money Laundering and Asset Recovery Section was honored with the Crime Victims’ Financial Restoration Award for their innovative approaches to securing financial restoration for crime victims. The award was presented during the annual National Crime Victims’ Service Awards ceremony in Washington, D.C.
Attorney General Sessions praised the team’s efforts, stating, ‘Civil asset forfeiture is a key tool that helps us defund organized crime, weaken criminals and cartels, and provide relief to victims.’ The Asset Forfeiture Program has returned over $5.1 billion in civilly and criminally forfeited funds to crime victims since 2002.
Over the past three years, the Money Laundering and Asset Recovery Section has returned over $1.3 billion in forfeited funds to crime victims. Most recently, the Unit oversaw a $772 million distribution to 24,000 victims of Bernard Madoff, with payments expected to eventually total over $4 billion.
The U.S. Victims of State Sponsored Terrorism Fund, which was established in 2016, has issued more than $1 billion to over 2,000 victims, including those affected by the Iran hostage crisis and the embassy bombings in Kenya and Tanzania.
The Justice Department recognized a dozen individuals and organizations for their outstanding efforts on behalf of victims of crime during the ceremony. Awardees were selected from public nominations in ten categories.
The Department of Justice observes National Crime Victims’ Rights Week each year in April, with the theme ‘Expand the Circle: Reach All Victims.’ This year’s observance takes place April 8-14.
Defendant: Bernie Madoff, Financial Scam, Washington 2019
Crime: Running a Ponzi scheme
State: Washington
Year: 2019
Outcome: Forfeited funds returned to victims
Amount: $1.2 billion
Key Facts
- State: Washington
- Category: White Collar Crime|Fraud & Financial Crimes|Organized Crime
- Source: DOJ Press Release â†â€â€
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