Madoff Trustee And His Law Firm Seek Another $22 Million

Nov 23 2009 | 1:15pm ET

Recovering assets for the victims of Bernard Madoff’s massive Ponzi scheme isn’t proving cheap.

Baker & Hostetler, the law firm that both employs Madoff trustee Irving Picard and is in turn employed by him in that capacity, has requested more than $21.5 million in fees and expenses for its work on the case over the past five months. Picard himself is seeking $835,605 in fees for his work as trustee over the same period.

Picard filed the bill in U.S. Bankruptcy Court in New York today. There is a court hearing on the fee requests scheduled for Dec. 17. Other firms have filed requests for more than $2.6 million.

The law firm and the trustee have already profited handsomely from the $65 billion Ponzi scheme. Baker & Hostetler were paid almost $15 million in fees and expenses for its first four-and-a-half months on the job, while Picard earned $759,229.

Picard has recovered about $1.4 billion in assets for Madoff’s victims and is pursuing a whole raft of lawsuits against investors to increase that kitty. He has estimated that total losses in the scheme, which sent Madoff to prison for 150 years, at $21.2 billion.

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