Tuesday, 3 May 2016
Last updated 7 hours ago
Jan 8 2014 | 10:45am ET
Yesterday's settlement with JPMorgan Chase has pushed the amount recovered from the Bernard Madoff Ponzi scheme by its court-appointed receiver above $10 billion.
Irving Picard will collect $543 million of the roughly $2.7 billion JPMorgan agreed to pay to settle allegations that it failed to notify authorities about concerns about Madoff's operations. Picard had been seeking $1 billion from the bank, which served as Madoff's primary bank for decades.
"This compromise with JPMorgan allows us to sidestep those pitfalls with recovering additional, significant monies," Picard's top lawyer, David Sheehan, said.
The recovery, which will be made available to victims following a judge's approval, means that Picard has recovered more than $10 billion of the roughly $17.5 billion investors lost when Madoff's fraud collapsed five years ago. Investors also have access to a $2.35 billion fund not overseen by Picard.
Picard is still seeking about $3.5 billion from three other banks. Much of the other proceeds from yesterday's deal with federal prosecutors and regulators is also expected to wind up in the hands of Madoff victims.