Madoff Fund pays millions to administrator’s firm but nothing to victims
New York — A firm hired by the US to distribute $4bn to victims of Bernard Madoff’s Ponzi scheme has racked up $38.8m in billings over four years. The investors are still waiting for their first cheques, though. The justice department disclosed its payments to Richard Breeden, the Madoff Victim Fund administrator, in response to a Freedom of Information Act request by Bloomberg News. Breeden’s fees, which are being paid from cash in the fund, cover the work he did in 2016. The delay highlights how eight-and-a-half years after Madoff’s arrest investors are still scrambling to recover money from a US fund that was announced with great fanfare. Victims have recovered billions of dollars from another fund, but they have yet to be made whole. "It’s very frustrating that people are making money off us like this, using money that was recovered for victims," said Daphne Brogdon, a Food Network personality, whose family lost about $5m in the Madoff scam. "They’re eating away at whatever perc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.