Picower Estate Compensates Madoff Victims $7.2 Billion

11:03 am Uncategorized

Last month, the estate of Madoff associate and philanthropist Jeffry Picower reached a deal with Madoff bankruptcy trustee Irving Picard to turn over $7.2 billion to compensate victims of the Madoff Ponzi scheme.  This was the largest single forfeiture in U.S. history.

Picower, who Picard claimed was a major beneficiary of Madoff’s scheme, died of a heart attack in 2009.  His widow Barbara denied that her husband knew of the scheme, but agreed to turn over $7.2 billion to be used to compensate victims.

Picard alleged that Picower invested $619 million with Madoff, and realized gains of $7.8 billion on those investments.  According to a news report, Picard said that Picower “knew or should have known that [he] was profiting from fraud, because of the highly implausible high rates of return”.

Picard has sued more than 400 investors he claims withdrew more than they invested with Madoff, who is currently serving a 150-year prison sentence.  To date, Picard has verified almost $6 billion in claims from more than 2,370 victims.  Last week, he received approval from a bankruptcy court judge to begin distributing the seized assets to those victims.

For help with making wise investment choices for your retirement or estate plan, contact our California estate planning law firm.

Help is available to you by contacting your Southern California financial planning experts today.

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