SIPC Praises Madoff Trustee on Recovery Agreement of $35 Million with Feeder Funds

WASHINGTON, DC – June 1, 2015 – The Securities Investor Protection Corporation (SIPC) today praised the latest achievement of Madoff Trustee Irving H. Picard, who filed a motion last Friday in the United States Bankruptcy Court for the Southern District of New York seeking approval of $35 million in recovery agreements with Ariel Fund Limited and Gabriel Capital, L.P.

Under the agreement, the trustee will recover 100 percent of the transfers made to the two funds.

SIPC President Stephen Harbeck said: "These settlements are substantial additions to the Trustee's fund of 'customer property.' They show the critical importance of powers given by the Bankruptcy Code and the Securities Investor Protection Act to trustees seeking to recover assets for the victims of Madoff’s Ponzi Scheme. The settlements are a continuation of the Trustee's efforts to maximize the return to victims. This will make for a far more equitable distribution to those Madoff customers who have not yet received a return of all of their principal."

Further, because SIPC pays for all administrative expenses, including legal fees, every penny of the recovered funds will be distributed to the victims.

The total amount distributed in the Madoff liquidation proceeding to date is approximately $7.576 billion, which includes more than $825.5 million in committed advances from SIPC. When additional settlements awaiting distribution are taken into account, the recovery to date in the Madoff liquidation proceeding totals $10.734 billion.