Madoff trustee wants victims to get more money - 13 WTHR Indianapolis

Victims of imprisoned Bernard Madoff's Ponzi scheme could be getting back more of their stolen money.

Trustee Irving Pickard, in charge of liquidating Madoff's assets, is asking a New York court for permission to distribute another $1.5 billion to $2.4 billion to investors who lost money in Madoff's fraudulent investments.

Picard's job is to recover as much money as possible for the victims. Since Madoff's firm collapsed, more than three and a half years ago, some victims have filed lawsuits and made other complaints over how Picard has chosen to distribute the money.

Picard estimates he has recovered $9.1 billion, but has been able to distribute only $1.1 billion.

If Picard is able to distribute the extra funds, as he asked to do, then that distribution plus a previous payout could satisfy as much as half of the allowed claims. There are currently about $7.5 billion of allowed claims, though that amount will increase as more claims are accepted.

Thousands of people invested with Madoff during a multi-decade fraud. His investment advisory service was a giant pyramid scheme, using money from new investors to pay returns to existing clients while financing a lavish lifestyle for him and cheating rich people, charities, celebrities and institutional investors.

He pleaded guilty to federal fraud charges and is serving a 150-year prison sentence.

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