Tuesday, January 14, 2025 – The US Department of Justice has disbursed over $4.3 billion to nearly 41,000 victims of Bernard Madoff’s Ponzi scheme, recovering nearly 94% of their losses in the largest fraud case in history, reports said last week.
Madoff’s scheme, spanning 17 years, defrauded investors from 127 countries of $65 billion.
His firm, Bernard L. Madoff Investment Securities LLC, promised steady returns while using incoming investments to pay earlier investors. The scheme collapsed during the 2008 financial crisis when investors rushed to withdraw funds, revealing the fraud.
In 2009, Madoff was sentenced to 150 years in prison. He died in April 2021 at the age of 82. The DOJ’s recoveries include $2.6 billion from civil forfeitures involving Madoff’s associates and clients who profited from the scheme, including Carl Shapiro and Jeffry Picower.
An additional $1.7 billion came from JPMorgan Chase’s settlement over its alleged failure to meet legal obligations as Madoff’s primary bank.
The DOJ’s efforts reflect an unwavering commitment to addressing financial crimes and compensating victims in complex cases, underscoring the agency’s resolve in recovering stolen funds.
