Bernie Madoff Fund Still Owes Fraud Victims

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The famous Bernie Madoff ponzi scheme is still affecting victims as none of them have received repayments from the company the Department of Justice, tapped to distribute $4 billion recovered from the notorious fraud.

Nearly 8½ years after Bernie Madoff was arrested, RCB Fund Services LLC is still working to finalize reviews and recommendations for 63,580 claims covering $67.8 billion in reported losses.

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In a January update posted on the fund’s website, special master Richard Breeden, whose company was hired to distribute the funds, wrote: “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,” wrote Breeden, a former chairman of the Securities and Exchange Commission. He added that the fund was expected to make “two or more cash distributions for approved claims.”

Although fraud victims have received nothing from the fund, Breeden’s company has been paid $38.8 million for its work, Bloomberg News reported Tuesday, citing records released by the government in response to a Freedom of Information Act request. […Read more]

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