Sixteenth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences Totaling More Than $76 Million

Eligible Madoff Customers Have Now Received More Than $14.58 Billion from the SIPA Trustee

NEW YORK and WASHINGTON, DC – February 28, 2025 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), announced that the sixteenth pro rata interim distribution from the Customer Fund to eligible BLMIS customers commenced today.

The SIPA Trustee is distributing more than $76 million on a pro rata basis to BLMIS account holders with allowed claims. Including today’s distribution, the aggregate amount sent to eligible BLMIS customers will total more than $14.58 billion, which includes approximately $850.4 million in advances committed by the Securities Investor Protection Corporation (SIPC). The sixteenth interim distribution represents 0.410 percent of each allowed claim and will be paid on claims relating to 769 accounts.

Approximately 71.546 percent of each customer’s allowed claim will have now been paid when combined with the prior 15 distributions in aggregate, unless that claim has been fully satisfied. Following the sixteenth distribution, 1,523 accounts with claims up to $1.741 million will be fully satisfied out of the 2,290 accounts with allowed claims.

“We are pleased that the tireless efforts in the Madoff proceeding are resulting in a sixteenth distribution to customers,” said Josephine Wang, SIPC president and CEO. “We remain confident of future recoveries.”

The sixteenth pro rata interim distribution was reached as a result of settlements and litigation since the last interim distribution in February 2024. The average payment for an allowed claim in the sixteenth interim distribution totals $99,931.25. The smallest payment totals $64.45 and the largest payment is $10,035,519.26.

“I’d like to thank both SIPC for its continued support, and David Sheehan and his legal team for their diligent work these past 16 years,” said Mr. Picard. “We have been encouraged by recent settlements that significant recoveries are still possible, and our work will continue until all possible recoveries are achieved.”

“Our entire team remains committed to identifying and recovering Madoff funds globally until all allowed claimants recover their losses,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “With numerous pending settlements and court cases in the pipeline, we remain optimistic that Madoff customers can look forward to additional compensation in the coming years.”

As of January 31, 2025, and since his appointment in December 2008, the SIPA Trustee has amassed approximately $14.739 billion as a result of recoveries and settlement agreements. These recoveries exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollar value and percentage of stolen funds recovered.

Subject to Court approval, 100 percent of the SIPA Trustee’s recoveries are allocated to the Customer Fund for distribution to BLMIS customers with allowed claims. None of the money recovered is used to pay administrative costs. All Trustee, legal and accounting fees, as well as administrative expenses, are paid by SIPC.

More information on overall recoveries to date and the liquidation can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Ms. Wang and Messrs. Picard and Sheehan would like to thank Seanna Brown and Heather Wlodek of BakerHostetler, who worked on the sixteenth pro rata interim distribution and its related filings, as well as BakerHostetler, Windels Marx, and all of the attorneys and professionals whose work has led to the distribution. They would also like to thank Vineet Sehgal and his colleagues at AlixPartners, as well as Michael Post, Kevin H. Bell, Nathanael Kelley, Nicholas Hallenbeck, and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative.

Created by Congress, SIPC was established as a nonprofit under the Securities Investor Protection Act of 1970. It was tasked with creating and administering a fund that would be used to restore investors’ missing assets in the event of a brokerage firm failure. Since 1971, through 330 liquidation proceedings, SIPC has distributed more than $142 billion for the benefit of more than 773,000 investors who otherwise might have lost their life savings.

Sixteenth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals More Than $76 Million

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Heather Wlodek, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel:

On Friday, February 21, 2025, the SIPA Trustee and his Counsel at BakerHostetler filed the 47th Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from August 1, 2024 through November 30, 2024.

• The Application seeks approval of fees, representing 72,621.30 hours of professional and paraprofessional services, which were billed at an average public interest discounted rate of approximately $556.05 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month Compensation Period of $4,486,768.99. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $2,603,144.50 (not including the 10 percent public interest discount) and wrote off expenses customarily charged to other clients in the amount of $74,285.34.

• The fees requested are reasonable based on the customary compensation charged by comparably skilled practitioners in Chapter 11 matters as well as comparable bankruptcy and non-bankruptcy cases in the competitive national legal market.

• After applying the public interest discount, the total fees requested for the period were $40,380,920.91 (of which $36,342,828.82 is to be paid currently and $4,038,092.09 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $374,881.18 was requested as reimbursement of the actual and necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort.

As noted in the Fee Application:

• During the Compensation Period of August 1, 2024 through November 30, 2024, without the need for protracted litigation, the SIPA Trustee settled one case for $1,025,000.00. The SIPA Trustee entered into settlements subsequent to the Compensation Period that have and will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (November 30, 2024), the SIPA Trustee dismissed 284 Hardship Program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

The SIPA Trustee has recovered or entered into agreements to recover approximately $14.739 billion through January 31, 2025. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by SIPC, which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

The SIPA Trustee has distributed approximately $14.504 billion to BLMIS customers with allowed claims through January 31, 2025, which includes $850.4 million in funds committed to be advanced by SIPC. All allowed customer claims up to approximately $1.731 million have been fully satisfied.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $891.1 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $6.478 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $907.3 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $610.4 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $526 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.578 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $248.5 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $328.8 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $721.7 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $515.9 million. The eleventh pro rata interim distribution commenced on February 28, 2020, and the SIPA Trustee has distributed approximately $372 million. The twelfth pro rata interim distribution commenced on February 26, 2021, and the SIPA Trustee has distributed approximately $233.1 million. The thirteenth pro rata interim distribution commenced on February 25, 2022, and the SIPA Trustee has distributed approximately $113.4 million. The fourteenth pro rata interim distribution commenced on February 24, 2023, and the SIPA Trustee distributed approximately $49.7 million. The fifteenth pro rata interim distribution commenced on February 23, 2024, and the SIPA Trustee distributed approximately $­­78.6 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $850.4 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $258.1 million in reimbursement.

The Bankruptcy Court hearing for approval of the 47th Fee Application has been scheduled for April 30, 2025 at 10 a.m.

The BakerHostetler attorneys who worked on behalf of the SIPA Trustee filing this Fee Application include David J. Sheehan, Seanna R. Brown and Heather R. Wlodek.

The filing is available on the Bankruptcy Court’s website: www.nysb.uscourts.gov; Case No. 08-01789. The Fee Application as well as additional information on recoveries, settlements and court filings can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Statement Regarding Forty-Seventh Fee Application

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Heather Wlodek, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel: 

NEW YORK, NEW YORK – January 21, 2025 – The United States Bankruptcy Court for the Southern District of New York today approved the SIPA Trustee’s request for an allocation to the BLMIS Customer Fund and authorized the SIPA Trustee to proceed with the sixteenth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As previously announced on December 11, 2024, with today’s court approval, the SIPA Trustee will allocate more than $101 million to the BLMIS Customer Fund, with more than $35.8 million available for immediate distribution to customers with allowed claims.  

This sixteenth pro rata interim distribution, when combined with the prior fifteen distributions, will equal at least 71.327 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total approximately $14.54 billion, which includes advances committed by the Securities Investor Protection Corporation (SIPC). All allowed customer claims up to $1.741 million will be fully satisfied after the distribution. The distribution is expected to commence by late February. 

The Sixteenth Customer Fund Allocation and Distribution Motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (LGB). It can also be found on the SIPA Trustee’s website along with more information on the BLMIS liquidation at www.madofftrustee.com.

Link to the December 11, 2024 press release:

https://www.madofftrustee.com/document/news/001370-final-sixteenth-allocation-press-release.pdf

Statement Regarding Bankruptcy Court Approval of Sixteenth Pro Rata Interim Distribution

Madoff Trustee Requests Allocation of More Than $101 Million to Customer Fund and Court Approval to Distribute More Than $35 Million to BLMIS Customers with Allowed Claims

Sixteenth Pro Rata Interim Distribution Will Bring Aggregate Customer Payout in Madoff Liquidation to Nearly $14.54 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – December 11, 2024 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a motion today in the United States Bankruptcy Court for the Southern District of New York seeking approval for an allocation of more than $101 million in recoveries to the BLMIS Customer Fund and an authorization for a sixteenth pro rata interim distribution of more than $35.8 million from the Customer Fund to BLMIS customers with allowed claims. A hearing on the motion has been scheduled for January 29, 2025 at 10:00 a.m. EST.

The proposed sixteenth pro rata interim distribution is the result of approximately $101.7 million in settlements and recoveries achieved by the SIPA Trustee and the legal teams since the last interim distribution in February 2024. 

“We’re pleased to be in a position to make another distribution to Madoff customers with allowed claims,” said Josephine Wang, President and Chief Executive Officer of the Securities Investor Protection Corporation (SIPC). “Thanks to the dedication of the SIPA Trustee and his legal team, in cooperation with SIPC’s legal team, we are continuing to recover funds for victims of the Madoff fraud.”

“Once this latest distribution is made, 1,523 accounts will be made whole, which is beyond all expectation at the onset of our work,” said Mr. Picard. “Our legal team, led by David Sheehan, has been working tirelessly to explore every avenue for recoveries, and we thank SIPC for its ongoing support of our efforts.”

“Our work is continuing in many jurisdictions worldwide, and we are optimistic that significant recoveries still lie ahead,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “I would also like to personally thank my team members for their hard work over the last 16 years.”

Sixteenth Distribution Will Bring Total Amount Restored to Nearly $14.54 Billion

When combined with the prior fifteen distributions, the sixteenth distribution will equal 71.327% percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total approximately $14.54 billion, including approximately $850.4 million in advances committed by SIPC. 

As of October 31, 2024, the SIPA Trustee has recovered or reached agreements to recover approximately $14.709 billion. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollars and percentage of stolen funds recovered.

The proposed distribution will be paid on claims relating to 769 BLMIS accounts and represents approximately 0.191% of their net equity claims, with an average payment amount of $46,556.21. When combined with the previous fifteen distributions and $850.4 million in advances committed by SIPC, 1,523 accounts with an allowed claim amount of up to $1.741 million will be fully satisfied following the sixteenth interim distribution.

No funds recovered in the Madoff Recovery Initiative are used to pay costs associated with the recovery. All trustee, legal, and accounting fees, as well as administrative expenses, are paid by SIPC.

The Sixteenth Customer Fund Allocation and Distribution Motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (CGM). It can also be found on the SIPA Trustee’s website along with more information on the BLMIS liquidation at: www.madofftrustee.com.

Ms. Wang and Messrs. Picard and Sheehan would like to thank Seanna Brown and Heather Wlodek of BakerHostetler, who worked on the sixteenth pro rata interim distribution and its related filings, as well as BakerHostetler, Windels Marx and all of the attorneys and professionals whose work has led to the distribution. They would also like to thank Vineet Sehgal and his colleagues at AlixPartners, as well as Michael Post, Kevin H. Bell, Nathanael Kelley, Nicholas Hallenbeck, and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.

# # #

Madoff Trustee Requests Allocation of More Than $101 Million to Customer Fund and Court Approval to Distribute More Than $35 Million to BLMIS Customers with Allowed Claims

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Heather Wlodek, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel:

On Friday, October 25, 2024, the SIPA Trustee and his Counsel at BakerHostetler filed the 46th Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from April 1, 2024 through July 31, 2024.

• The Application seeks approval of fees, representing approximately 76,771.30 hours of professional and paraprofessional services, which were billed at an average public interest discounted rate of approximately $553.82 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month Compensation Period of $4,724,154.64. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $3,004,700.70 (not including the 10 percent public interest discount) and wrote off expenses customarily charged to other clients in the amount of $98,221.98.

• The fees requested are reasonable based on the customary compensation charged by comparably skilled practitioners in Chapter 11 matters as well as comparable bankruptcy and non-bankruptcy cases in the competitive national legal market.

• After applying the public interest discount, the total fees requested for the period were $42,517,391.76 (of which $38,265,652.58 is to be paid currently and $4,251,739.18 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $975,315.91 was requested as reimbursement of the actual and necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort.

As noted in the Fee Application:

• During the Compensation Period of April 1, 2024 through July 31, 2024, without the need for protracted litigation, the SIPA Trustee settled three cases for $42,897,245.08. The SIPA Trustee entered into settlements subsequent to the Compensation Period that have and will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (July 31, 2024), the SIPA Trustee dismissed 284 Hardship Program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

The SIPA Trustee has recovered or entered into agreements to recover over $14.705 billion through September 30, 2024. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by SIPC, which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

The SIPA Trustee has distributed approximately $14.504 billion to BLMIS customers with allowed claims through September 30, 2024, which includes $850.4 million in funds committed to be advanced by SIPC. All allowed customer claims up to approximately $1.731 million have been fully satisfied.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $891.1 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $6.478 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $907.3 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $610.4 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $526 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.578 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $248.5 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $328.8 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $721.7 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $515.9 million. The eleventh pro rata interim distribution commenced on February 28, 2020, and the SIPA Trustee has distributed approximately $372 million. The twelfth pro rata interim distribution commenced on February 26, 2021, and the SIPA Trustee has distributed approximately $233.1 million. The thirteenth pro rata interim distribution commenced on February 25, 2022, and the SIPA Trustee has distributed approximately $113.4 million. The fourteenth pro rata interim distribution commenced on February 24, 2023, and the SIPA Trustee distributed approximately $49.7 million. The fifteenth pro rata interim distribution commenced on February 23, 2024, and the SIPA Trustee distributed approximately $­­78.6 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $850.4 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $258.1 million in reimbursement.

The Bankruptcy Court hearing for approval of the 46th Fee Application has been scheduled for December 18, 2024 at 10 a.m.

The BakerHostetler attorneys who worked on behalf of the SIPA Trustee filing this Fee Application include David J. Sheehan, Seanna R. Brown and Heather R. Wlodek.

The filing is available on the Bankruptcy Court’s website: www.nysb.uscourts.gov; Case No. 08-01789. The Fee Application as well as additional information on recoveries, settlements and court filings can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Statement Regarding Forty-Sixth Fee Application

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Heather Wlodek, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel:

On Friday, June 28, 2024, the SIPA Trustee and his Counsel at BakerHostetler filed the 45th Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from December 1, 2023 through March 31, 2024.

• The Application seeks approval of fees, representing approximately 75,254.90 hours of professional and paraprofessional services, which were billed at an average public interest discounted rate of approximately $552.75 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month Compensation Period of $4,621,878.39. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $2,421,442.90 (not including the 10 percent public interest discount) and wrote off expenses customarily charged to other clients in the amount of $87,113.55.

• The fees requested are reasonable based on the customary compensation charged by comparably skilled practitioners in Chapter 11 matters as well as comparable bankruptcy and non-bankruptcy cases in the competitive national legal market.

• After applying the public interest discount, the total fees requested for the period were $41,596,905.51 (of which $37,437,214.96 is to be paid currently and $4,159,690.55 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $608,136.02 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort. A $11,238,712.83 portion of the overall holdback amount of $22,477,425.66 was requested from the Bankruptcy Court with the consent and approval of the Securities Investor Protection Corporation (SIPC).

As noted in the Fee Application:

• During the Compensation Period of December 1, 2023 through March 31, 2024, without the need for protracted litigation, the SIPA Trustee settled seven cases for $36,865,216.35. The SIPA Trustee entered into settlements subsequent to the Compensation Period that have and will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (March 31, 2024), the SIPA Trustee dismissed 284 Hardship Program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

The SIPA Trustee has recovered or entered into agreements to recover $14.694 billion through May 31, 2024. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by SIPC, which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

The SIPA Trustee has distributed approximately $14.504 billion to BLMIS customers with allowed claims through May 31, 2024, which includes $850.4 million in funds committed to be advanced by SIPC. All allowed customer claims up to approximately $1.731 million have been fully satisfied.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $891.1 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $6.478 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $907.3 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $610.4 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $526 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.578 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $248.5 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $328.8 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $721.7 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $515.9 million. The eleventh pro rata interim distribution commenced on February 28, 2020, and the SIPA Trustee has distributed approximately $372 million. The twelfth pro rata interim distribution commenced on February 26, 2021, and the SIPA Trustee has distributed approximately $233.1 million. The thirteenth pro rata interim distribution commenced on February 25, 2022, and the SIPA Trustee has distributed approximately $113.4 million. The fourteenth pro rata interim distribution commenced on February 24, 2023, and the SIPA Trustee distributed approximately $49.7 million. The fifteenth pro rata interim distribution commenced on February 23, 2024, and the SIPA Trustee distributed approximately $¬¬78.6 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $850.4 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $258.1 million in reimbursement.

The Bankruptcy Court hearing for approval of the 45th Fee Application has been scheduled for August 28, 2024 at 10 a.m.
The BakerHostetler attorneys who worked on behalf of the SIPA Trustee filing this Fee Application include David J. Sheehan, Seanna R. Brown and Heather R. Wlodek.

The filing is available on the Bankruptcy Court’s website: www.nysb.uscourts.gov; Case No. 08-01789. The Fee Application as well as additional information on recoveries, settlements and court filings can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Statement Regarding Forty-Fifth Fee Application

Fifteenth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals More Than $78 Million

Aggregate Distributions Now Reach More Than $14.5 Billion

NEW YORK and WASHINGTON, DC – February 23, 2024 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), announced that the fifteenth pro rata interim distribution from the Customer Fund to eligible BLMIS customers commenced today.

The SIPA Trustee is distributing more than $78 million on a pro rata basis to BLMIS account holders with allowed claims. Including today’s distribution, the aggregate amount sent to eligible BLMIS customers will total more than $14.5 billion, which includes approximately $850.4 million in advances committed by the Securities Investor Protection Corporation (SIPC).

The fifteenth interim distribution represents 0.419 percent of each allowed claim and will be paid on claims relating to 773 accounts. When combined with the prior 14 distributions, in aggregate, approximately 71.136 percent of each customer’s allowed claim will be paid, unless that claim has been fully satisfied.

“For the fifteenth straight year, Madoff customers are receiving compensation thanks to the tireless work of the Trustee and SIPA legal teams,” said Josephine Wang, SIPC president and CEO. “We are proud to continue to support the recovery initiative and we look forward to the recovery of additional significant amounts for the benefit of customers.”

The fifteenth pro rata interim distribution was reached as a result of settlements and litigation since the last interim distribution in February 2023.

“While no one could have predicted the success we’ve had to date, we will not be satisfied until all paths to recoveries have been explored,” said Mr. Picard. “We thank SIPC for being a supportive partner in our efforts. I also want to thank David Sheehan and my legal team for their unwavering dedication to this case and their commitment to helping Madoff customers recover their stolen funds.”

“Our worldwide recovery work continues, and I’m encouraged by our litigation successes over the last year, including the decision in the Sage case reaffirming the foundation of our recovery methodology,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “With the pending settlements and court cases in the pipeline, I’m confident we’re on track to return more money to customers next year.”

The average payment for an allowed claim in the fifteenth interim distribution totals $101,641.06. The smallest payment totals $65.87 and the largest payment is $10,255,811.15.

Currently, the SIPA Trustee has allowed 2,656 claims relating to 2,290 BLMIS accounts. Of these 2,290 accounts, 1,521 with claims up to $1.731 million will be fully satisfied following the fifteenth interim distribution.

As of January 31, 2024, and since his appointment in December 2008, the SIPA Trustee has amassed approximately $14.661 billion as a result of recoveries and settlement agreements.

These recoveries exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollar value and percentage of stolen funds recovered.

Subject to Court approval, 100 percent of the SIPA Trustee’s recoveries are allocated to the Customer Fund for distribution to BLMIS customers with allowed claims. None of the money recovered is used to pay administrative costs. All Trustee, legal and accounting fees, as well as administrative expenses, are paid by SIPC.

More information on overall recoveries to date and the liquidation can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Ms. Wang and Messrs. Picard and Sheehan would like to thank Seanna Brown and Heather Wlodek of BakerHostetler, who worked on the fifteenth pro rata interim distribution and its related filings, as well as BakerHostetler, Windels Marx, and all of the attorneys and professionals whose work has led to the distribution. They would also like to thank Vineet Sehgal and his colleagues at AlixPartners, as well as Michael Post, Kevin H. Bell, Nathanael Kelley, Nicholas Hallenbeck, and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative.

# # #

Fifteenth Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals More Than $78 Million

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Heather Wlodek, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel:

On Friday, February 23, 2024, the SIPA Trustee and his Counsel at BakerHostetler filed the 44th Interim Fee Application with the United States Bankruptcy Court for the Southern District of New York for their work on the global liquidation of BLMIS from August 1, 2023 through November 30, 2023.

• The Application seeks approval of fees, representing approximately 73,201.30 hours of professional and paraprofessional services, which were billed at an average public interest discounted rate of approximately $545.93 per hour.

• The public interest discount applied represents a reduction of 10 percent from standard rates and it resulted in a total voluntary reduction during the four-month Compensation Period of $4,440,326.30. Additionally, the SIPA Trustee and BakerHostetler voluntarily adjusted their fees by writing off $2,581,075.70 (not including the 10 percent public interest discount) and wrote off expenses customarily charged to other clients in the amount of $88,413.33.

• The fees requested are reasonable based on the customary compensation charged by comparably skilled practitioners in Chapter 11 matters as well as comparable bankruptcy and non-bankruptcy cases in the competitive national legal market.

• After applying the public interest discount, the total fees requested for the period were $39,962,936.70 (of which $35,966,643.03 is to be paid currently and $3,996,293.67 is to be held back through the conclusion of the liquidation period or until further order by the Court). In addition, $317,803.23 was requested as reimbursement of the actual necessary costs and expenses incurred by the SIPA Trustee and BakerHostetler in connection with the recovery effort.

As noted in the Fee Application:

• During the Compensation Period of August 1, 2023 through November 30, 2023, without the need for protracted litigation, the SIPA Trustee settled two cases for $3,400,000. The SIPA Trustee entered into settlements subsequent to the Compensation Period that have and will bring additional funds into the Customer Fund.

• As of the end of the Compensation Period (November 30, 2023), the SIPA Trustee dismissed 284 Hardship Program applicant-defendants from avoidance actions after reviewing the facts and circumstances presented in each application and through additional information requested and verified by the SIPA Trustee.

The SIPA Trustee has recovered or entered into agreements to recover over $14.661 billion through January 31, 2024. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.

The costs associated with the SIPA Trustee’s recovery and settlement efforts are paid by SIPC, which administers a fund drawn upon assessments on the securities industry. No fees or other costs of administration are paid from recoveries obtained by the SIPA Trustee for the benefit of BLMIS customers with allowed claims. One hundred percent of the SIPA Trustee's recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.

The SIPA Trustee has distributed approximately $14.504 billion to BLMIS customers with allowed claims through February 23, 2024, which includes $850.4 million in funds committed to be advanced by SIPC. All allowed customer claims up to approximately $1.731 million have been fully satisfied.

The first pro rata interim distribution commenced on October 5, 2011 and to date equals approximately $891.1 million. A second pro rata interim distribution commenced on September 19, 2012 and to date equals approximately $6.478 billion. The third pro rata interim distribution commenced on March 29, 2013 and to date equals approximately $907.3 million. The fourth pro rata interim distribution commenced on May 5, 2014, and the SIPA Trustee has distributed approximately $610.4 million. In the fifth pro rata interim distribution, which commenced on February 6, 2015, he has distributed approximately $526 million. In the sixth pro rata interim distribution, which commenced on December 4, 2015, the SIPA Trustee distributed approximately $1.578 billion. The seventh pro rata interim distribution commenced on June 30, 2016 and to date equals approximately $248.5 million. The eighth pro rata interim distribution commenced on February 2, 2017 and to date equals approximately $328.8 million. The ninth pro rata interim distribution commenced on February 22, 2018, and the SIPA Trustee has distributed approximately $721.7 million. The tenth pro rata interim distribution commenced on February 22, 2019, and the SIPA Trustee has distributed approximately $515.9 million. The eleventh pro rata interim distribution commenced on February 28, 2020, and the SIPA Trustee has distributed approximately $372 million. The twelfth pro rata interim distribution commenced on February 26, 2021, and the SIPA Trustee has distributed approximately $233.1 million. The thirteenth pro rata interim distribution commenced on February 25, 2022, and the SIPA Trustee has distributed approximately $113.4 million. The fourteenth pro rata interim distribution commenced on February 24, 2023, and the SIPA Trustee distributed approximately $49.7 million. The fifteenth pro rata interim distribution commenced on February 23, 2024, and the SIPA Trustee distributed approximately $¬¬78.6 million.

In addition, SIPC has made advances available to the court-appointed SIPA Trustee to distribute to accounts with allowed claims (up to $500,000 maximum), as a way to expedite financial relief to those account holders. To date, SIPC has committed $850.4 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation. Under SIPA, SIPC must be reimbursed for its advances to customers. To date, SIPC has received approximately $258.1 million in reimbursement.

The Bankruptcy Court hearing for approval of the 44th Fee Application has been scheduled for April 17, 2024 at 10 a.m.

The BakerHostetler attorneys who worked on behalf of the SIPA Trustee filing this Fee Application include David J. Sheehan, Seanna R. Brown and Heather R. Wlodek.

The filing is available on the Bankruptcy Court’s website: www.nysb.uscourts.gov; Case No. 08-01789. The Fee Application as well as additional information on recoveries, settlements and court filings can be found on the SIPA Trustee’s website: www.madofftrustee.com.

Statement Regarding Forty-Fourth Fee Application

Statement from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

Attributable to Heather Wlodek, spokeswoman for Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) and his counsel:

NEW YORK, NEW YORK – January 23, 2024 – The United States Bankruptcy Court for the Southern District of New York today approved the SIPA Trustee’s request for an allocation to the BLMIS Customer Fund and authorized the SIPA Trustee to proceed with the fifteenth pro rata interim distribution from the Customer Fund to BLMIS customers with allowed claims.

As previously announced on December 8, 2023, with today’s court approval, the SIPA Trustee will allocate more than $66 million to the BLMIS Customer Fund, with more than $45.23 million available for immediate distribution to customers with allowed claims.

This fifteenth pro rata interim distribution, when combined with the prior fourteen distributions, will equal at least 70.959 percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total more than $14.43 billion, which includes advances committed by the Securities Investor Protection Corporation (SIPC). All allowed customer claims up to $1,707,339.85 will be fully satisfied after the distribution. The distribution is expected to commence by late February.

The Fifteenth Customer Fund Allocation and Distribution Motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (CGM). It can also be found on the SIPA Trustee’s website along with more information on the BLMIS liquidation at www.madofftrustee.com.

Link to the December 8, 2023 press release: https://www.madofftrustee.com/document/news/001289-fifteenth-allocation-and-distribution-press-release-vf.pdf

Statement Regarding Bankruptcy Court Approval of Fifteenth Pro Rata Interim Distribution

Madoff Trustee Requests Allocation of More Than $66 Million to Customer Fund and Court Approval to Distribute More Than $45 Million to BLMIS Customers with Allowed Claims

Fifteenth Pro Rata Interim Distribution Will Bring Aggregate Customer Payout in Madoff Liquidation to Nearly $14.43 Billion

NEW YORK, NEW YORK and WASHINGTON, DC – December 8, 2023 – Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a motion today in the United States Bankruptcy Court for the Southern District of New York seeking approval for an allocation of more than $66 million in recoveries to the BLMIS Customer Fund and an authorization for a fifteenth pro rata interim distribution of more than $45.23 million from the Customer Fund to BLMIS customers with allowed claims. A hearing on the motion has been scheduled for Wednesday, January 24, 2024 at 10:00 a.m. EST.

The proposed fifteenth pro rata interim distribution is the result of approximately $49.08 million in settlements and recoveries achieved by the SIPA Trustee and the legal teams since the last interim distribution in February 2023.

“On the 15th anniversary of the uncovering of the largest Ponzi scheme in history, the SIPA Trustee and his legal team, with the support of the SIPC legal team, continue to achieve remarkable results in their efforts to recover stolen Madoff customer funds,” said Josephine Wang, President and Chief Executive Officer of the Securities Investor Protection Corporation (SIPC). “They have the full support of SIPC as well as our thanks for their commitment and accomplishments.”

“Our legal team under David Sheehan continues to achieve judicial victories on behalf of Madoff claimants with allowed claims. Their success has also encouraged other defendants to negotiate settlements to avoid the expense of litigation, which in turn permits us to return more Madoff stolen funds to their rightful owners,” said Mr. Picard. “I also would like to thank SIPC for its continued support in our recovery efforts.”

“Our Second Circuit victory in the Sage case earlier this year, as well as ongoing litigation on a number of fronts, makes us optimistic that we’re on the cusp of additional significant recoveries in 2024,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “We are proud to have recovered more stolen funds than any liquidation case of its kind, but our work is not done. The SIPA Trustee’s legal team will continue to work to ensure that feeder funds and other sophisticated financial institutions are held accountable and forced to return stolen funds.”

Fifteenth Distribution Will Bring Total Amount Restored to Nearly $14.43 Billion

When combined with the prior fourteen distributions, the fifteenth distribution will equal 70.959% percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total approximately $14.43 billion, including approximately $849.9 million in advances committed by SIPC.

As of October 31, 2023, the SIPA Trustee has recovered or reached agreements to recover approximately $14.608 billion. This recovery far exceeds any prior restitution effort related to Ponzi schemes both in terms of dollars and percentage of stolen funds recovered.

The proposed distribution will be paid on claims relating to 772 BLMIS accounts and represents approximately 0.242% of their net equity claims, with an average payment amount of $58,588.22. When combined with the previous fourteen distributions and $849.9 million in advances committed by SIPC, 1,517 accounts with an allowed claim amount of up to $1,707,339.85 will be fully satisfied following the fifteenth interim distribution.

No funds recovered in the Madoff Recovery Initiative are used to pay costs associated with the recovery. All trustee, legal, and accounting fees, as well as administrative expenses, are paid by SIPC.

The Fifteenth Customer Fund Allocation and Distribution Motion can be found on the United States Bankruptcy Court’s website at http://www.nysb.uscourts.gov/; Bankr. S.D.N.Y., No. 08-01789 (CGM). It can also be found on the SIPA Trustee’s website along with more information on the BLMIS liquidation at: www.madofftrustee.com.

Ms. Wang and Messrs. Picard and Sheehan would like to thank Seanna Brown and Heather Wlodek of BakerHostetler, who worked on the fifteenth pro rata interim distribution and its related filings, as well as BakerHostetler, Windels Marx and all of the attorneys and professionals whose work has led to the distribution. They would also like to thank Vineet Sehgal and his colleagues at AlixPartners, as well as Michael Post, Kevin H. Bell, Nathanael Kelley, Nicholas Hallenbeck, and their colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.

Madoff Trustee Requests Allocation of More Than $66 Million to Customer Fund and Court Approval to Distribute More Than $45 Million to BLMIS Customers with Allowed Claims