Madoff trustee 'expects to pay $100m back to victims'

18 May 2009

The court-appointed trustee overseeing the bankruptcy of Bernard Madoff's investment empire has said he expects to pay around $100 million (£65.6 million) back to victims of the disgraced financier by Memorial Day on May 25th.

In a conference call with reporters, Irving Picard said that as of Wednesday (May 13th), he had received 8,848 claims of losses related to Mr Madoff's $65 billion Ponzi scheme.

He added that several lawsuits have already been filed against hedge funds and other investors to try and claw back around $10.1 billion in false profits paid out by Mr Madoff's firm, Bernard L Madoff Investment Securities.

A further 233 "clawback letters" have also been demanding the return of stolen funds paid out as returns to other investors, the Boston Globe reports.

Mr Picard revealed that most of these letters have been sent to members of Mr Madoff's family, key employees at his firm and their relatives.

According to the Associated Press, Mr Picard has previously alleged that Mr Madoff's wife, two sons and brother had used investors' cash to fund their lifestyle, although their lawyers argue that they were not aware of the fraud until Mr Madoff confessed in December.

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