Madoff money: Trustee spent $26M recovering $849G for victims
REUTERS, October 31, 2010
nypost.com
A trustee overseeing the bankruptcy of Bernard Madoff's investment firm spent $26.9 million in the second and third quarters to recover $849,000 for Madoffs victims, according to a federal court filing.
Irving Picard, the trustee, said in a filing with Manhattan federal court that much of the expense -- $15.8 million -- went to cover fees for his law firm, Baker & Hostetler LLP.
Picard said his ability to call on the resources of Baker & Hostetler in such areas as corporate, real estate, bankruptcy, securities, employment, tax, banking and litigation has been of material assistance.
REUTERS
Irving Picard, the bankruptcy trustee in the Bernard Madoff case, exits the U.S. Bankruptcy Court in New York February 2, 2010. Picard and victims of convicted schemer Bernard Madoff will wait to find out what compensation they receive from his estate during hearings in Manhattan's Bankruptcy court. REUTERS/Brendan McDermid (UNITED STATES - Tags: CRIME LAW BUSINESS)
Since beginning the task of weeding through the aftermath of Madoffs Ponzi scheme, Picard has recovered about $1.5 billion for victims through Sept. 30, the filing said.
About 14,030 claims had been reviewed as of Oct. 22, with 2,280 approved for payment, the filing said.
Besides the law firm expense during the second and third quarters, Picard spent $7.1 million on consultants and $107,560 on hosting expenses, according to the filing.
Most of the $849,000 recovered for victims of Madoffs Ponzi scheme came from investors who received preferential payouts ahead of the bankruptcy of Madoffs firm, the filing said.
A portion of the amount recovered -- $71,158 -- came from interest and dividends on various bank accounts.
Bernard Madoff was arrested and charged in December 2008 when his sons, according to their lawyers, reported him to authorities after he confessed to running a massive $50 billion dollar Ponzi scheme.
A Ponzi scheme is one in which early investors are paid with money deposited by new clients.
Madoff, 72, pleaded guilty in March 2009 and is serving a 150-year prison sentence.
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