Justice Department pays $488M to victims of Bernie Madoff’s infamous Ponzi scheme

The US Justice Department has announced it will pay $488 million to victims of Bernie Madoff’s historic Ponzi scheme, bringing the total recovery from losses to 80%.

The landmark payment will go to nearly 37,000 victims worldwide and is the sixth payment from the US Federal government. The total recovery is nearly $3.2 billion.

Madoff was sentenced in 2009 to 150 years in prison for his historic fraud using his ponzi scheme, which scammed unknowing ‘investors’ worldwide.

“That is an extraordinary level of recovery for a Ponzi scheme — but our work is not yet finished, and the office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s heinous crimes continues,” Acting Manhattan U.S. Attorney Audrey Strauss said.

In June, a judge denied Madoff’s request for compassionate release claiming he was dying.

The feds expect to pay victims a total of $4 billion through the Madoff Victim Fund. Roughly $2.2 billion was taken from the estate of deceased Madoff investor Jeffry Picower, who was the largest beneficiary of the Ponzi scheme.

The Justice Department collected an additional $1.7 billion from JPMorgan Chase Bank for failing to report suspicious Madoff-related transactions, among other violations.