Victims of Bernard Madoff’s multi-billion dollar scheme are seeking more than $40 billion in compensation.
Reuters reported that Richard Breeden, who was appointed by the U.S. Department of Justice to oversee the $4.05 billion Madoff Victim Fund, said Tuesday that he received approximately 51,700 claims from investors looking to collect a total of more $40 billion.
The article said that Breedem expects a “substantial” number of claims to be ineligible, duplicative or inflated. He is also allowing investors at so-called "feeder funds," hedge funds, banks and other entities that invested in Madoff to try to claim their losses.
On the flipside, Irving Picard, a court-appointed bankruptcy trustee winding down Bernard L. Madoff Investment Securities LLC, has allowed only direct investors to recover. Picard has recovered approximately $9.8 billion of the $17.5 billion in principal he said was lost by those who submitted claims, and distributed nearly $6 billion.
Arrested in December 2008 and pled guilty three months later, Madoff is currently serving a 150-year term in a North Carolina federal prison.