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The
proposed payout would be the seventh by the trustee Irving
Picard, and follows several recent settlements to recoup sums
from other firms that once did business with Madoff.
Once the distribution is made, eligible recipients will have
recouped about $9.45 billion, Picard said.
U.S. Bankruptcy Judge Stuart Bernstein is expected to review the
payout at a June 15 hearing in Manhattan.
Picard noted that the proposed distribution would be the
smallest so far, but in a statement said: "It is vital to move
expeditiously to return stolen Madoff funds to the rightful
owners. The victims have waited years for restitution."
Madoff's fraud was uncovered in December 2008. Now 78, Madoff
pleaded guilty to fraud in March 2009 and is serving a 150-year
prison term.
About $171 million of the latest payout would go to 972 former
customers of Bernard L. Madoff Investment Securities LLC
immediately, while about $76 million would be held back pending
the outcome of other litigation.
Individual distributions would range from about $137 to about
$28.7 million, the trustee said.
This would result in full payments on 1,289 of the 2,597 Madoff
accounts with valid claims, including everyone owed $1.2 million
or less, the trustee said.
Picard has recovered or reached agreements to recover roughly
$11.13 billion, more than three-fifths of the $17.5 billion of
principal he has said Madoff customers lost.
The sums administered by Picard are separate from a $4 billion
U.S. Department of Justice fund overseen by former U.S.
Securities and Exchange Commission Chairman Richard Breeden.
Last week, Breeden said he expects to recommend payouts to at
least 25,280 claimants, including people who invested with
Madoff through third parties. Breeden expects to submit formal
recommendations by the end of August.
(Reporting by Jonathan Stempel in New York; Editing by Jonathan
Oatis)
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