Madoff Victims to Receive $498.3 Million Settlement from Luxembourg Funds
Former clients of Bernard Madoff, the notorious Ponzi schemer, are set to receive $498.3 million in a settlement with the liquidators of two Luxembourg funds. This agreement will increase their total recovery to approximately $15.26 billion. The Luxembourg Investment Fund and Luxembourg Investment Fund U.S. Equity Plus had invested with Madoff's firm for three years before its collapse in 2008. The settlement amount represents all transfers received by the Luxembourg funds from Madoff's firm, and they will also contribute 15% of the proceeds from their lawsuit against UBS to the Madoff firm's bankruptcy estate. A court hearing is scheduled for June 25 to seek approval for the settlement.
The liquidator, Irving Picard, has been working to recover funds for Madoff's customers and has already secured $14.76 billion prior to this settlement. The total estimated losses for Madoff's customers are $17.5 billion, and the payouts will benefit 2,656 customers with valid claims. Additionally, the U.S. government-created Madoff Victim Fund has awarded $4.3 billion to over 40,000 individuals, schools, charities, and pension plans affected by Madoff's scheme. These recipients include both direct customers and victims who lost money through feeder funds connected to Madoff.
Bernard Madoff's fraudulent activities remained hidden for years until he confessed to his sons in 2008, leading to the collapse of his firm. He later pleaded guilty to multiple charges and received a 150-year prison sentence. Madoff passed away in prison in April 2021 at the age of 82. The settlement with the Luxembourg funds marks another step in the ongoing efforts to recover funds for Madoff's victims and provide some compensation for their losses.