Philanthropist's Estate To Pay Back $7.2 Billion In Profits Made In Madoff Scheme
A Bloomberg article announced that Irving Picard, the trustee liquidating Bernie Madoff’s failed investment firm, is collecting $7.2 billion from the estate of philanthropist Jeffry Picower. According to the article, Picower’s estate will pay $5 billion to Picard and $2.2 billion to U.S. authorities to resolve claims that he profited from the fraud perpetrated resulting in losses of $20 billion in principal. Picower and his family invested some $619 million with Madoff going back to the 1970’s and withdrew $7.8 billion, according to the forfeiture complaint filed. He drowned in his swimming pool in October 2009.
This deal coupled with the other $2.5 billion or so recovered brings the total to $9.8 billion to help pay off claims approved in the bankruptcy proceedings.