The Department of Justice began distribution of $504 million in forfeited funds in connection with Bernard Madoff’s Ponzi scheme, bringing the total distribution to more than $1.2 billion divided among thousands of victims.
“In one of the most notorious and unconscionable financial crimes in history, Bernie Madoff robbed tens of thousands of individuals, pension plans, charitable organizations and others, all the while funding a lavish personal lifestyle,” Attorney General Jeff Sessions said of the former Roslyn resident in a release. “Through the use of asset forfeiture, the Department of Justice has recovered over $4 billion of Mr. Madoff’s fraud, and we continue to work to compensate those he defrauded.”
The distribution was announced April 12 by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman for the Southern District of New York and Sessions.
Last June, the department approved more than 39,000 petitions for compensation, but in total, the Madoff Victim Fund has received more than 65,000 petitions from victims in 136 countries.
“We cannot undo the damage that Bernie Madoff has done, but today’s distribution will provide significant relief to many of the victims of one of the worst frauds of all time,” Sessions said.
For decades, Madoff used his position as chairman of Bernard L. Madoff Investment Securities, an investment advisory business he founded in 1960, to steal billions of dollars from his clients.
On March 12, 2009, he pleaded guilty to 11 federal felonies, admitting he had turned his wealth management business into the world’s largest Ponzi scheme to benefit himself, his family and select friends. On June 29 the same year, U.S. District Judge Denny Chin sentenced Madoff to 150 years in prison and ordered him to forfeit $170 billion as well.
A Manhasset woman who worked as Madoff’s assistant, Annette Bongiorno, was sentenced to six years in prison in 2014 for documenting nonexistent trades for Madoff’s company.
“While today’s distribution of funds is indeed historical in scope, we understand no amount of money could ever restore the damage done by Madoff as a result of his selfish behavior and unforgivable financial crimes,” FBI Assistant Director William F. Sweeney Jr. said.
“To all of his many victims and their families, we realize this gesture may not provide the consolation necessary to remove the pain and suffering you have been brought to bear, but we are hopeful it provides some sense of relief, and we remain committed to achieve justice for all victims of inexcusable financial crimes.”
