Parker Waichman LLP

Almost $7M More Found in Madoff Funds

$7 Million in Six Madoff Accounts. Irving Picard, the special trustee investigating Bernard Madoff’s bogus financial schemes has found close to $7 million in six Madoff accounts at Bank of New York Mellon Corporation, reports Newsday, citing bankruptcy court papers. According to the article, the accounts range in size from 5,372 to $6.5 million. Picard […]

Madoff Funds

$7 Million in Six Madoff Accounts. Irving Picard, the special trustee investigating Bernard Madoff’s bogus financial schemes has found close to $7 million in six Madoff accounts at Bank of New York Mellon Corporation, reports Newsday, citing bankruptcy court papers. According to the article, the accounts range in size from 5,372 to $6.5 million.

Picard is requesting that the newly found funds be transferred for future disbursement to defrauded investors injured in Madoff’s historic $65-billion Ponzi scheme. The new-found money from the Bank of New York accounts brings the estimated total of funds recovered to somewhere between $950 million and $1 billion, said Newsday, and will be used to repay investors duped by Madoff.

On March 12, Madoff pleaded guilty to 11 fraud counts in what is believed to be the largest Ponzi scheme in history. Last November, Madoff told his investors that his fund held more than $65 billion, but in reality, he only had a fraction of that amount. Since his guilty plea, Madoff has been held at the Manhattan Correctional Center and faces a June sentencing and up to 150 years in prison.

This recent recovery is considered small when compared to other recoveries and the estimated losses; however, said Newsday, an anonymous source close to the investigation said some other “additional discoveries” totaling over $100 million should be announced shortly. The source also said additional lawsuits are being considered and could increase recoveries to about $2 billion by year-end.

To Buy Out the Remaining, Legitimate Madoff Business.

Most recently, Boston’s Castor Pollux Securities LLC agreed to buy out the remaining, legitimate Madoff business for a cost of $25.5 million over four years. Castor Pollux won the business in an auction that ended Monday evening, said Newsday. The money from the sale will be used to repay investors in the same way as other asset sales, such as Madoff’s New York Mets season tickets, Newsday explained.

“The auction yielded a higher and better offer for the market-making business,” Picard said in a statement. “The additional consideration that we will receive as a result of the auction will benefit Madoff victims,” quoted Newsday. Picard has also brought legal actions against offshore investment funds in the hopes of recouping about $405 million withdrawn by the funds from Madoff accounts just prior to Madoff’s scheme falling apart and making headlines, said Newsday. Picard also sent a number of so-called “clawback” letters to corporations and individual investors seeking over $735 million in false profits that represent stolen property, explained Newsday.

Last week, the Madoff debacle spawned two more lawsuits. The Wall Street Journal reported in a prior piece that two funds and their fund managers were separately sued over allegations that the managers breached “their fiduciary duties in entrusting client money” with Madoff. Just prior, a federal judge blocked Madoff’s assets from being moved into bankruptcy, reported CNN, saying that the court found probable cause that the “assets should be forfeited to the government.” Earlier this month, investors petitioned a federal judge to rescind an order preventing forced bankruptcy. Federal prosecutors and the Securities and Exchange Commission (SEC) indicated they intend to seek forfeiture and disgorgement of Madoff’s assets in both the criminal and civil cases. But, according to the attorney representing the investors behind the bankruptcy petition, it is unclear if they intend to distribute any such funds to Madoff’s customers and what rules would govern such distribution. The five investors were seeking nearly $64 million.

Need Legal Help Regarding Madoff Funds?

The personal injury attorneys at Parker Waichman LLP offer free, no-obligation case evaluations. For more information, fill out our online contact form or call 1-800-YOURLAWYER (1-800-968-7529).

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
Kelli Alexander is your employee, we have been dealing with her for years. Our case just concluded. Parker Waichman has been a wonderful representative. But Kelli Alexander has been your greatest asset. Our calls promptly returned. Any question answered quicky. She has been kind courteous. and professional, at all times you are lucky to have her in you employment.
Donna Giambalvo
4 years ago
5 Star Reviews 150
I had a great experience with Tina and Gina working relentlessly on my fathers 911 case. They were attentive to my questions and concerns will making sure all documentation was submitted correctly in a timely manner. It has been a pleasure having them lead my family and I to victory in the precious memory of my father. May God continue to bless them!!
Robin Holland
2 weeks ago
5 Star Reviews 150
This is my second time using Parker Waichman, needless to say I was pleased the first time. This time I was blessed to have David Aminov. This man works hard! Always updating me on my case which I’ve had open since 2018. I am very pleased, & will be recommending everyone I know to Parker Waichman. Thank you again, I appreciate you all so much, especially Mr. Aminov.
Logan Oliver
4 weeks ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038