Shiv Telegram Media – The Lawyers in Bernie Madoff Case
2 min read
Title: Bernie Madoff’s Ponzi Scheme Fallout: $14.6 Billion Recovered for Victims
In a shocking turn of events, Bernie Madoff, the notorious mastermind behind one of the world’s largest Ponzi schemes, was apprehended by the FBI 15 years ago. While the fallout from Madoff’s $65 billion fraud continues to be examined, the court-appointed trustee overseeing the liquidation of Madoff’s firm, Irving Picard, has managed to recover over $14.6 billion for the victims.
Picard, practicing law with Baker & Hostetler, has been tirelessly working on the case and his law firm has now been awarded a staggering $1.5 billion in fees for their efforts. These fees make up nearly 17% of the firm’s revenues since Picard’s appointment, underscoring the magnitude of the Madoff scandal.
Picard’s primary focus has been on pursuing legal action against “feeder funds” and “net winners” to help recover funds for Madoff’s victims. A significant portion of the recoveries, around half, came from a settlement reached with Jeremy Picower’s estate, a long-time friend of Madoff. However, Picard isn’t stopping there. He is now turning his attention to recovering money that was transferred overseas, aiming to maximize restitution for those affected.
It’s important to note that the hefty fees awarded to Picard and his firm are not paid from the recovered funds but by the Securities Investor Protection Corporation (SIPC). This is a common practice in complex corporate fraud cases, as seen with the Enron Corp case where the legal team received $688 million in fees for recovering $7.2 billion.
In a similar vein, Sullivan & Cromwell, a prominent US law firm, has recently been granted approval to collect over $77 million in fees for overseeing the bankruptcy estate of cryptocurrency exchange FTX. This highlights the considerable compensation legal professionals can receive for their involvement in complex financial cases.
While progress has been made in the Madoff case, Picard isn’t quite done yet. He continues to pursue approximately 100 recovery lawsuits, significantly reducing the number from the initial 1,000 at the beginning of the Madoff liquidation. According to Josephine Wang, the president and CEO of SIPC, the liquidation process will not conclude until the maximum recovery has been achieved for Madoff’s customers, ensuring that justice is served.
In summary, the arrest of Bernie Madoff marked the beginning of an arduous journey towards justice for his victims. Though no amount of restitution can fully repair the damage caused, Irving Picard’s relentless efforts have resulted in the recovery of over $14.6 billion, giving hope to those affected by Madoff’s deceitful actions. The pursuit of legal redress continues, and the closure of the liquidation remains dependent on achieving maximum recovery for customers, as confirmed by SIPC’s president and CEO.
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