Madoff Victims Will Get $7.2 Billion After Prosecutors And Picard Reach Settlement

bernie madoff mugshot

Federal prosecutors and Irving Picard, the trustee in charge of liquidating Bernie Madoff’s estate, have reached a deal that will see at least $7 billion recovered for victims of the Ponzi scheme, according to DealBook.

Previously Picard had recovered $2.3 billion to compensate victims, so this new cache of funds will
significantly expand the amount that can be repaid.

The civil forfeiture is the largest in history.

The settlement comes from the estate of Jeffry Picower – a Palm Beach philanthropist and
longtime investor in Madoff Securities – who was reportedly the biggest beneficiary of Madoff’s scheme. Picower died in October last year.

Picower became wealthy by investing in medical-technology companies, and took out billions more than he paid into the fund.

The settlements “will return every penny received from almost 35 years of investing with Bernard Madoff,” Picower’s wife, Barbara, said in a statement.

She also said she is confident her husband was in “no way complicit” in Madoff’s scheme.

According to Dealbook,

For such a formidable investor, Mr. Picower had long flown beneath Wall Street’s radar. Before he appeared as one of the largest clients of Mr. Madoff’s fraudulent investment advisory business, he was known in financial circles primarily for his medical technology investments.

In 2004, a few years after he took control of Alaris Medical Systems with a stake of roughly $86 million, he sold the company to Cardinal Health for more than $1 billion.

Don’t miss Pictures Of Bernie Madoff’s Bizarre Estate >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.