Bernard L. Madoff, Ponzi Scheme, New York 2009

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Table of Contents

Madoff’s Massive Ponzi Scheme Finally Reaches Conclusion

The curtain has closed on the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, with the Justice Department announcing its 10th and final distribution of over $131.4 million to victims.

This payment brings the total recovered to over $4.3 billion, compensating more than 40,000 victims in 127 countries for their losses. The scheme, which involved the theft of billions from clients, was masterminded by Madoff, who pleaded guilty to 11 federal felonies in 2009.

Madoff’s Ponzi scheme, which benefited himself, his family, and select members of his inner circle, was the largest in history. He was sentenced to 150 years in prison on June 29, 2009, for running the scheme. The recovery of funds was made possible through a combination of civil forfeiture actions, including the historic recovery from the estate of deceased Madoff investor Jeffry Picower, and a deferred prosecution agreement with JPMorgan Chase Bank N.A.

Principal Deputy Assistant Attorney General Brent S. Wible praised the work of the Money Laundering and Asset Recovery Section (MLARS) in administering the remission program to compensate victims using forfeited assets.

“The Criminal Division, through its MLARS, is proud to administer the department’s remission program to compensate victims using forfeited assets,” Wible said. “The unprecedented scope and complexity of the Madoff remission process shows the power of forfeiture to recover assets and to compensate victims — a primary goal of the department’s Asset Forfeiture Program.”

Acting U.S. Attorney Edward Y. Kim emphasized the significance of the distribution, stating, “This office has never stopped at pursuing justice for victims of history’s largest Ponzi scheme. With this 10th and final distribution, we have succeeded in compensating 40,930 victims with close to 94% of their losses.

Assistant Director in Charge James E. Dennehy of the FBI New York Field Office commended the Justice Department’s efforts, saying, “Today’s distribution represents an unprecedented conclusion of victim compensation from civil forfeiture actions related to the Madoff scheme with more than $4 billion repaid to over 40,000 victims.”