More Madoff money going back to investors

JTA – Victims of Bernard Madoff’s Ponzi scheme will split another $500 million, bringing the total recovered to $10.3 billion.

Trustee Irving Picard on Nov. 17 announced a settlement with two “feeder funds” that are being liquidated in the Cayman Islands. The funds had invested with Madoff but had withdrawn their profits from Madoff’s firm in the six years before it collapsed. Investors in those funds are also entitled to recoup some of their losses.

The settlement must be approved by the U.S. Bankruptcy Court in Manhattan, which has scheduled a Dec. 17 hearing to consider approval of the deal, according to The Associated Press.

Picard has distributed to bilked investors nearly $6 billion of the $10.3 billion recovered in the past six years.

Madoff, 70, is serving a 150-year sentence at the medium-security federal prison in Butner, N.C., for a scheme believed to be the largest of its kind in U.S. history. He pleaded guilty in March 2009.

The scheme affected a disproportionate number of Jewish individuals and organizations.