The Denver Post - - BUSINESS -

Bernard Mad­off ’s vic­tims are set to re­ceive a com­bined $342 mil­lion pay­out from the trustee un­wind­ing his epic Ponzi scheme, fi­nanced in part by a set­tle­ment with the es­tate of one of the con man’s old­est friends, the late Bev­erly Hills bil­lion­aire Stan­ley Chais.

The dis­tri­bu­tion, if ap­proved by a judge, would be the eighth since Mad­off ’s ar­rest on Dec. 11, 2008. Trustee Irv­ing Pi­card’s law­suits and set­tle­ments with banks and wealthy in­vestors have re­cov­ered about $11.5 bil­lion for thou­sands of vic­tims who lost $17.5 bil­lion in prin­ci­pal.

The lat­est round of checks is be­ing funded by set­tle­ments reached in re­cent months with in­vestors who prof­ited from the scam, in­clud­ing Chais’s es­tate, which agreed in Oc­to­ber to pay $277 mil­lion to re­solve claims against the money man­ager who fun­neled cash from his own cus­tomers into Mad­off ’s Ponzi scheme. Chais, who died in 2010, wasn’t charged with wrong­do­ing.

The pro­posed dis­tri­bu­tion will be con­sid­ered for ap­proval on Jan. 12 hear­ing in U.S. Bank­ruptcy Court in Man­hat­tan.

Mad­off, 78, pleaded guilty to fraud in 2009 and is serv­ing a 150-year sen­tence. Five of his top em­ploy­ees were con­victed at a 2014 trial of aid­ing the scam.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.