Hundreds of Madoff’s former customers will receive $500,000

Hundreds of victims of the Wall Street swindler Bernard Madoff have been awarded $116m in compensation, officials said.

Irving Picard, the court-appointed trustee for the liquidation of the dodgy investment business announced that the funds have been committed to 237 of Madoff’s former customers. Each will receive funds to cover $500,000 in losses suffered in the Ponzi scheme.

Picard also said that two hedge funds managed by Optimal Investment Services SA, one of the largest conduits of investor money to Madoff’s Ponzi scheme, agreed to pay $235m to settle legal claims. The settlement amounts to 85% of what the trustee would have sought in an avoidance action from the Optimal fund.

‘I am very pleased that we reached such a favorable settlement with Optimal and that Optimal will pay more than $235 million to resolve the claims against it. We hope that other entities against which we have claims will likewise come forward to settle those claims for the benefit of all of Madoff’s victims,’ said Picard.