The U.S. Department of Justice (DOJ) announced the near-complete restitution of losses to 40,930 investors affected by the largest financial pyramid scheme in history, orchestrated by Bernard L. Madoff. Over the past ten years, more than $4.3 billion has been paid out.
Madoff, using a Ponzi scheme, defrauded investors from 127 countries out of approximately $65 billion, promising high returns through his company, Bernard Madoff Investment Securities. The scheme collapsed in 2008 during the global financial crisis when investors began to withdraw their funds en masse. In 2009, Madoff was sentenced to 150 years in prison and died in 2021 at the age of 82.
The DOJ managed to recover about $2.6 billion through civil suits for the forfeiture of Madoff's property, his brother's, and other accomplices. An additional $1.7 billion was obtained after settling claims against JPMorgan Chase, which was accused of failing to meet its obligations as Madoff's primary bank.
Acting U.S. Attorney Edward Y. Kim noted that nearly 94% of the losses of the 40,930 victims were compensated, emphasizing the department's commitment to protecting the interests of the victims, regardless of the complexity of the task and the time spent.