A fund established by the US government to help compensate victims of the late fraudster Bernard Madoff has begun making the final round of payments, according to a statement from the Justice Department.
The compensation offered by the Madoff Victims Fund (MVF) is worth $131.4 million (£104.6 million) and the total amount it has distributed to 40,930 claimants is set to reach $4.3 billion.
Madoff, the Wall Street financier who was disgraced after admitting to one of the largest frauds in US financial history. He died in prison in 2021.
He was serving a Ruled for 150 years After pleading guilty in 2009 to running a so-called Ponzi scheme, which paid investors money from new clients rather than actual profits.
“MVF's distributions offset one of the most heinous financial crimes ever committed,” said Richard C. Breeden, who runs MVF.
Mr. Breeden is the former Chairman of the US financial regulatory body, the Securities and Exchange Commission (SEC).
He added: “We have brought tens of thousands of victims to the greatest extent of recovery we can achieve.”
Madoff's victims were a mix of wealthy individuals, less wealthy individuals, and corporations – both large and small – as well as schools, charities and pension funds.
MFV estimates that it will recover approximately 94% of confirmed casualty losses when it completes its mission in 2025.
Another $14.7 billion was returned through bankruptcy proceedings to Madoff's clients.
Madoff's investment firm collapsed during the 2008 financial crisis.
Founded in 1960, Bernard L Madoff Investment Securities became one of Wall Street's largest market makers—matching buyers and sellers of stocks—and Madoff served as head of the Nasdaq stock trading platform.
Over the years, the company has been investigated eight times by the Securities and Exchange Commission because it generated exceptional returns.
But it was the global recession that led to the company's collapse, as Madoff's investors, hurt by the downturn, tried to withdraw about $7 billion, but he was unable to find the money to cover it.
The list of those defrauded included actor Kevin Bacon, Hall of Fame baseball player Sandy Koufax, and director Steven Spielberg's charity, Wonderkinder.
British banks were also among those who lost money, with HSBC Holdings saying it was exposed to about $1 billion. Other corporate victims were Royal Bank of Scotland, Man Group and Japan's Nomura Holdings.
