Madoff Trustee Scores $7.2 Billion Settlement

By Robert Davis
Dec 17 2010

Irving Picard, the trustee of the Madoff estate, announced this morning that he has won a $7.2 billion settlement from the estate of Jeffry Picower in New York.

The settlement is the next phase in the forward movement to recover lost monies that were stolen from victims of Madoff’s massive Ponzi scheme. The total amount that was lost, according to estimates, sits at $20 billion. With the newest settlement, Picard has managed to recoup over half of the money lost that will be distributed to victims.

Picard has hailed the settlement as a major victory in the battle to help victims of the massive scam. While the settlement will need to be approved by the judge that is overseeing the case, the money will be put into escrow and allowed to gain interest while the terms of the settlement are reviewed.

Picard will receive $5 billion in a single cash payment while the US Attorney will receive the other $2.2 billion as part of an asset forfeiture plan. All cash will then be placed into the trust fund, upon approval from the judge, and distributed to the victims that have made eligible claims against the estate.

Jeffry Picower was a longtime friend of Madoff and was invested heavily in the Ponzi scheme. Picower was discovered drowned in his personal swimming pool last year after suffering a massive heart attack.

Picower’s widow insists that she agreed to the settlement but still asserts that her late husband had no hand in the illegal activities that Madoff was carrying out.