Wednesday, 29 June 2016
Last updated 1 hour ago
Feb 2 2009 | 1:53am ET
Two banks have agreed to transfer more than $500 million to the bankruptcy trustee liquidating Bernard L. Madoff Investment Securities.
The Bank of New York Mellon Corp. will transfer $301.4 million from Madoff Securities’ brokerage accounts to Irving Picard, the trustree, while JPMorgan Chase will transfer $233.5 million, according to court papers filed last week. The agreement—which includes indemnification of the banks against claims brought as a result of transfers—will be presented to the bankruptcy court judge overseeing the Madoff case on Wednesday. The transfers are to be completed by Friday.
The transfers are in addition to some $29 million BNY Mellon turned over to Picard to held cover liquidation expenses in December.
The brokerage money—which is separate from Madoff’s money management business, the heart of his alleged $50 billion Ponzi scheme—is to be distributed to the firm’s brokerage customers. At the time of his arrest, Madoff allegedly said their was between $200 million and $300 million left in his investment advisory business, which claimed to manage some $17 billion.