The Justice Department on Thursday started doling out payments to reimburse more than 30,000 victims of Bernie Madoff’s Ponzi scheme, more than 12 years after Madoff admitted his hedge fund was the biggest known fraud scheme in history.
Around $568 million in forfeited funds is set to be returned to investors who used Madoff to manage their money, marking the seventh round of repayments from the federal government.
After this round, more than $3.7 billion of the $4.05 billion Madoff Victim Fund will have been distributed, according to the Justice Department.
The largest sources of the fund are around $2.2 billion that was collected in a civil forfeiture from Jeffry Picower—a major beneficiary in the Ponzi scheme—along with the $1.7 billion JPMorgan Chase paid as a penalty after prosecutors said the bank failed to alert authorities of suspicious actions by Madoff.
Madoff pleaded guilty to 11 felonies in 2009, admitting his business—Bernard L. Madoff Investment Securities—was a Ponzi scheme.
“This distribution provides nearly 31,000 victims additional financial recovery from the egregious crimes committed by Bernard Madoff,” said Acting Assistant Attorney General Kenneth A. Polite Jr.,…