SIPC Praises Madoff Trustee On Recovery Agreement Of $35 Million With Feeder Funds
WASHINGTON, June 1, 2015 /PRNewswire/ -- The Securities Investor Protection Corporation (SIPC) today praised the latest achievement of Madoff Trustee Irving H. Picard, who filed a motion last Friday in the United States Bankruptcy Court for the Southern District of New York seeking approval of $35 million in recovery agreements with Ariel Fund Limited and Gabriel Capital, L.P.
Under the agreement, the trustee will recover 100 percent of the transfers made to the two funds.
SIPC President Stephen Harbeck said: "These settlements are substantial additions to the Trustee's fund of 'customer property.' They show the critical importance of powers given by the Bankruptcy Code and the Securities Investor Protection Act to trustees seeking to recover assets for the victims of Madoff's Ponzi Scheme. The settlements are a continuation of the Trustee's efforts to maximize the return to victims. This will make for a far more equitable distribution to those Madoff customers who have not yet received a return of all of their principal."
Further, because SIPC pays for all administrative expenses, including legal fees, every penny of the recovered funds will be distributed to the victims.
The total amount distributed in the Madoff liquidation proceeding to date is approximately $7.576 billion, which includes more than $825.5 million in committed advances from SIPC. When additional settlements awaiting distribution are taken into account, the recovery to date in the Madoff liquidation proceeding totals $10.734 billion.
ABOUT SIPC
The Securities Investor Protection Corporation (http://www.sipc.org) is the U.S. investor's first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.
The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims for customer cash and/or securities held in custody with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2014, SIPC has advanced $ 2.3 billion in order to make possible the recovery of $134 billion in assets for an estimated 773,000 investors.
SOURCE Securities Investor Protection Corporation (SIPC)
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