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Madoff trustee recoups biggest settlement yet
Source: Agencies |
December 18, 2010, Saturday
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THE man assigned to recover money for Madoff's victims won his biggest settlement yet -- an agreement by the estate of longtime Madoff friend Jeffry Picower to give back US$7.2 billion in profits from the epic fraud.
The settlement significantly boosts the recovery pot to close to US$10 billion, capping a weeks-long flurry of settlements and lawsuits around the December 11 second anniversary of Bernard Madoff's arrest and confession to orchestrating what is considered the biggest financial fraud in history.
Picower died of a heart attack in Florida in October 2009 at the age of 67 -- five months after the court-appointed trustee, Irving Picard, claimed Picower's rates of return were implausibly high from his investments and control of some Madoff accounts since the late 1970s.
"This is the largest forfeiture recovery in US history," Manhattan US Attorney Preet Bharara said at a press conference with Picard, the Federal Bureau of Investigation and the Internal Revenue Service to announce the settlement by Picower's wife, Barbara.
Bharara said she "has agreed to forfeit US$7.2 billion ..., a figure that represents every last dollar of the Picowers' profit from Bernie Madoff's fraud."
Picard said that as soon as practicable after the settlement is approved by a US Bankruptcy Court judge in New York, he would ask the court to begin an initial distribution of funds to customers. The approval is expected next month.
The family of the accountant and lawyer turned billionaire philanthropist said that Picower at the time of his death had been working toward reaching a settlement. His wills over the years directed most of his wealth to charity, the family lawyer, William Zabel, said.
Madoff, 72, is serving a 150-year prison sentence after pleading guilty in March 2009 to orchestrating the massive scheme. US prosecutors estimated the international investment fraud took in about US$65 billion over at least two decades.
The trustee has put the amount investors lost at about US$20 billion and this month ramped up his global search for money, adding to lawsuits he has filed over the last two years against individuals, Madoff family members, funds and banks.
One defendant was Mark Madoff, the eldest son of Bernard Madoff, who committed suicide on Saturday's anniversary of his father's arrest. Mark Madoff and his brother Andrew ran the brokerage at the firm. They denied prior knowledge of the fraud.
Picard sued several major banks in recent weeks to bring the total sought for the victims to about US$50 billion.
The settlement significantly boosts the recovery pot to close to US$10 billion, capping a weeks-long flurry of settlements and lawsuits around the December 11 second anniversary of Bernard Madoff's arrest and confession to orchestrating what is considered the biggest financial fraud in history.
Picower died of a heart attack in Florida in October 2009 at the age of 67 -- five months after the court-appointed trustee, Irving Picard, claimed Picower's rates of return were implausibly high from his investments and control of some Madoff accounts since the late 1970s.
"This is the largest forfeiture recovery in US history," Manhattan US Attorney Preet Bharara said at a press conference with Picard, the Federal Bureau of Investigation and the Internal Revenue Service to announce the settlement by Picower's wife, Barbara.
Bharara said she "has agreed to forfeit US$7.2 billion ..., a figure that represents every last dollar of the Picowers' profit from Bernie Madoff's fraud."
Picard said that as soon as practicable after the settlement is approved by a US Bankruptcy Court judge in New York, he would ask the court to begin an initial distribution of funds to customers. The approval is expected next month.
The family of the accountant and lawyer turned billionaire philanthropist said that Picower at the time of his death had been working toward reaching a settlement. His wills over the years directed most of his wealth to charity, the family lawyer, William Zabel, said.
Madoff, 72, is serving a 150-year prison sentence after pleading guilty in March 2009 to orchestrating the massive scheme. US prosecutors estimated the international investment fraud took in about US$65 billion over at least two decades.
The trustee has put the amount investors lost at about US$20 billion and this month ramped up his global search for money, adding to lawsuits he has filed over the last two years against individuals, Madoff family members, funds and banks.
One defendant was Mark Madoff, the eldest son of Bernard Madoff, who committed suicide on Saturday's anniversary of his father's arrest. Mark Madoff and his brother Andrew ran the brokerage at the firm. They denied prior knowledge of the fraud.
Picard sued several major banks in recent weeks to bring the total sought for the victims to about US$50 billion.
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