Bernie Madoff, mastermind of the largest Ponzi scheme in history, was arrested almost 8 ½ years ago, but a company selected by the Department of Justice to distribute billions of recovered dollars has yet to make one payment to any victim, according to USA Today.
RCB Fund Services LLC has been charged with the responsibility of distributing roughly $4 billion to those swindled by Madoff, and while that sum is just a relative fraction of the $65 billion that went missing from Madoff Securities, it is not likely that claimants see the amount presently available for distribution as a figure of which to be dismissive.
The failure of RCB to distribute any funds thus far was addressed back in January by special master Richard Breeden, in a statement on the madoffvictimfund.com website. Breeden, a former chairman of the Securities and Exchange Commission, wrote, in part, “We were unable to initiate our first payout in 2016 as we had hoped because of the volume and complexity of claims.”
“However, we now expect that the initial distribution will take place sometime in 2017 and will be larger than we had anticipated.”
Raising eyebrows even further, beyond the singular issue of having doled out no money to victims, is that Breeden’s firm has received $38.8 million so far for its role as a distribution agent.
RCB’s inability to distribute any funds up to this point stands in stark contrast to the work done separately by the Securities Investor Protection Corporation on behalf of Madoff victims. The SIPC effort, led by Irving Picard, has recovered almost $12 billion, and has so far distributed a little over $9 billion to claimants.
The information contained here is for general information purposes only. The Financial Writer blog and Bob Yetman disclaim responsibility for any liability or loss incurred as a consequence of the use or application, either directly or indirectly, of any information presented herein. Nothing contained in this article, or any other article featured at this blog, should be construed as a solicitation or recommendation to engage in any financial transaction. You should seek the advice of a qualified professional before making any changes to your personal financial profile.