Bernie Madoff victims to recoup $498 million in settlement, recovery hits $15.26 billion
Jonathan Stempel
Reuters
Former customers of the late Ponzi schemer Bernard Madoff will recoup $498.3 million under a settlement on Wednesday with the liquidators of two Luxembourg funds, boosting their recovery to about $15.26 billion.
The Luxembourg Investment Fund and Luxembourg Investment Fund U.S. Equity Plus had invested exclusively with Bernard L. Madoff Investment Securities for three years before Madoff's firm collapsed in December 2008.
Irving Picard, the trustee liquidating Madoff's firm, said the $498.3 million represents all transfers that the Luxembourg funds received from the firm.
The funds will also give the Madoff firm's bankruptcy estate 15% of proceeds from their lawsuit in Luxembourg against the Swiss bank UBS UBSG.S.
They are expected to receive $45.1 million on their own claim against the estate. The funds did not admit wrongdoing.
Need a break? Play the USA TODAY Daily Crossword Puzzle.
Who was Bernie Madoff?: Who did his Ponzi scheme impact and how did he get caught?
Court approval is required, and a June 25 hearing has been scheduled.
A lawyer for the Luxembourg funds did not immediately respond to requests for comment.
Prior to Wednesday's settlement, Picard recovered $14.76 billion for Madoff customers, whose losses he has estimated at $17.5 billion. Payouts go to 2,656 customers whose claims he deemed valid.
The payouts are separate from the $4.3 billion awarded by the U.S. government-created Madoff Victim Fund to 40,930 individuals, schools, charities and pension plans.
These recipients included customers, and victims who lost money indirectly through Madoff, including in "feeder funds."
Madoff concealed his fraud for decades before confessing to his sons one day after his firm's 2008 Christmas party.
He pleaded guilty to 11 criminal charges and was sentenced to 150 years in prison, with the sentencing judge calling Madoff's crimes "extraordinarily evil."
Madoff died in prison at age 82 in April 2021.
Reporting by Jonathan Stempel in New York; Editing by Rod Nickel
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
an hour ago
- CNBC
Trump deploys National Guard as Los Angeles protests against immigration agents continue
President Donald Trump's administration said it would deploy 2,000 National Guard troops on Saturday as federal agents in Los Angeles faced off against demonstrators for a second day following immigration raids. The security agents confronted around 100 protesters in the Paramount area in southeast Los Angeles, where some demonstrators displayed Mexican flags and others covered their mouths with respiratory masks. Trump's border czar, Tom Homan, told Fox News that the National Guard would be deployed in Los Angeles on Saturday evening. California Governor Gavin Newsom called the decision "purposefully inflammatory." "If Governor Gavin Newscum, of California, and Mayor Karen Bass, of Los Angeles, can't do their jobs, which everyone knows they can't, then the Federal Government will step in and solve the problem, RIOTS & LOOTERS, the way it should be solved!!!" Trump posted on his Truth Social platform. The protests pit Democratic-run Los Angeles, where census data suggests a significant portion of the population is Hispanic and foreign-born, against Trump's Republican White House, which has made cracking down on immigration a hallmark of his second term. In the late afternoon, authorities began detaining some protesters, according to Reuters witnesses. There was no immediate official information of any arrests. Video footage showed dozens of green-uniformed security personnel with gas masks lined up on a road strewn with overturned shopping carts as small canisters exploded into gas clouds. "Now they know that they cannot go to anywhere in this country where our people are, and try to kidnap our workers, our people - they cannot do that without an organized and fierce resistance," said protester Ron Gochez, 44. A first round of protests kicked off on Friday night after Immigration and Customs Enforcement agents conducted enforcement operations in the city and arrested at least 44 people on alleged immigration violations. Stephen Miller, an immigration hardliner and the White House deputy chief of staff, wrote on X that Friday's demonstrations were "an insurrection against the laws and sovereignty of the United States." On Saturday, he described the day's protests as a "violent insurrection." The Department of Homeland Security said in a statement about Friday's protests that "1,000 rioters surrounded a federal law enforcement building and assaulted ICE law enforcement officers, slashed tires, defaced buildings, and taxpayer funded property." Reuters could not verify DHS's accounts. Angelica Salas, executive director of immigrants' rights organization Chirla, said lawyers had not had access to those detained on Friday, which she called "very worrying." Trump has pledged to deport record numbers of people in the country illegally and lock down the U.S.-Mexico border, with the White House setting a goal for ICE to arrest at least 3,000 migrants per day. But the sweeping immigration crackdown has also caught up people legally residing in the country, including some with permanent residence, and has led to legal challenges. In a statement on Saturday about the protests in Paramount, the Los Angeles County Sheriff's Office said: "It appeared that federal law enforcement officers were in the area, and that members of the public were gathering to protest." Salas of Chirla said protesters gathered after an ICE contingent appeared to be using parking lots near a Paramount Home Depot store as a base. ICE, the Department of Homeland Security, and the Los Angeles Police Department did not respond to requests for comment on the protests or potential immigration sweeps on Saturday. Television news footage on Friday showed unmarked vehicles resembling military transport and vans loaded with uniformed federal agents streaming through Los Angeles streets as part of the immigration enforcement operation. Raids occurred around Home Depot stores, where street vendors and day laborers were picked up, as well as at a garment factory and a warehouse, Salas of Chirla said. Bass, the Democratic mayor of Los Angeles, condemned the immigration raids. "I am deeply angered by what has taken place," Bass said in a statement. "These tactics sow terror in our communities and disrupt basic principles of safety in our city. We will not stand for this."
Yahoo
9 hours ago
- Yahoo
Operation Spider's Web: Germany estimates that Ukraine damaged 10% of Russian strategic aircraft
Ukraine's drone attack on Russian airfields on 1 June probably damaged about 10% of Russia's strategic bomber fleet, German Major General Christian Freuding has said. Source: Freuding in a podcast, as reported by European Pravda, citing Reuters Quote: "According to our assessment, more than a dozen aircraft were damaged, TU-95 and TU-22 strategic bombers as well as A-50 surveillance planes." Details: According to the general, who coordinates Berlin's military assistance to Kyiv and works closely with the Ukrainian Defence Ministry, the A-50s, which have a similar function to NATO's AWACS aircraft in providing air surveillance, were probably not in working order. "We believe that they can no longer be used for spare parts. This is a loss, as only a handful of these aircraft exist," he said. "As for the long-range bomber fleet, 10% of it has been damaged in the attack according to our assessment," Freuding added. The United States estimates that the daring Ukrainian drone attack hit up to 20 Russian warplanes, destroying about 10 of them, two US officials told Reuters. Experts say it will take Moscow years to replace the affected aircraft. Despite the losses, Freuding sees no immediate reduction in Russian strikes on Ukraine, noting that Moscow still retains 90% of its strategic bombers, which can launch ballistic and cruise missiles in addition to dropping bombs. "But there is, of course, an indirect effect as the remaining planes will need to fly more sorties, meaning they will be worn out faster, and, most importantly, there is a huge psychological impact," he said. Freuding said that Russia felt secure in its vast territory, which also explains why the aircraft were not well protected. "After this successful operation, this no longer holds true. Russia will need to ramp up the security measures," the general said. Background: On 1 June 2025, the Security Service of Ukraine (SSU) carried out a special operation codenamed Pavutyna ("Spider's Web"), hitting Russian strategic jets at four airfields. SSU head Vasyl Maliuk stated that 34% of strategic cruise missile carriers at Russia's main airfields had been destroyed. The SSU said the estimated cost of the equipment destroyed as a result of Operation Spider's Web is over US$7 billion. A senior NATO official called the operation the most successful one yet. The Alliance estimated that at least 40 aircraft were damaged. Between 10 and 13 aircraft were completely destroyed. Ukrainian President Volodymyr Zelenskyy has emphasised that the security services used exclusively Ukrainian weapons in this operation and did not use equipment from allied warehouses. Support Ukrainska Pravda on Patreon!
Yahoo
9 hours ago
- Yahoo
Trump says Department of Justice made decision to bring back Abrego Garcia
(Reuters) -U.S. President Donald Trump said on Saturday it was the Department of Justice, not him, that made the decision to bring back to the U.S. a man mistakenly deported from Maryland to El Salvador. Kilmar Abrego Garcia was flown back to face criminal charges of transporting illegal immigrants within the U.S., Attorney General Pam Bondi said on Friday. His return marked an inflection point in a case seized on by critics of Trump's immigration crackdown as a sign that his administration was disregarding civil liberties in its push to step up deportations of migrants. "Well, that wasn't my decision. The Department of Justice decided to do it that way, and that's fine," Trump told NBC News in an interview when asked about Abrego Garcia's return. Trump added that he had not spoken to El Salvador President Nayib Bukele about the move. Abrego Garcia, a 29-year-old Salvadoran whose wife and young child in Maryland are U.S. citizens, appeared in federal court in Nashville on Friday evening. His arraignment was set for June 13, when he will enter a plea, according to local media reports. Until then, he will remain in federal custody. If convicted, he would be deported to El Salvador after serving his sentence, Bondi said. The Trump administration has said Abrego Garcia was a member of the MS-13 gang, an accusation that his lawyers deny. Abrego Garcia was deported on March 15, more than two months before the charges were filed. He was briefly held in a mega-prison known as the Terrorism Confinement Center in El Salvador, despite a U.S. immigration judge's 2019 order barring him from being sent to the Central American nation because he would likely be persecuted by gangs. Trump said he thought it would be "a very easy case" against Abrego Garcia, who he accused of having a "horrible record of abuse" of women. Abrego Garcia's lawyer, Simon Sandoval-Moshenberg, has called the criminal charges "fantastical."
