Full Remarks as Prepared for Assistant Director in Charge Janice K. Fedarcyk for Press Conference on Agreement to Recover $7.2 Billion for Victims of Bernard L. Madoff’s Ponzi Scheme From Estate of Jeffry M. Picower
|FBI New York December 17, 2010|
Just over two years ago, we learned of the massive investment fraud scheme at Bernard L. Madoff Investment Securities that spanned at least three decades. There were thousands of investors, including individuals who were so taken in by Bernard Madoff’s confidence game that they invested the bulk of their net worth with him. Universities and charitable organizations also invested and were defrauded.
The unprecedented settlement announced today is in part the result of forensic accounting work done by the Trustee and the FBI to determine who were the net winners in the Madoff scheme, and the size of their fictitious profits.
In excess of seven billion dollars will now be added to amounts already recovered, making the hope of significant financial restitution for Madoff victims a reality. People who two years ago faced the devastating prospect of losing everything now stand to recover about half their investment.
And the concerted effort continues to find and recover every available penny.
When people are victimized by a financial fraud, justice consists not only of making restitution, but also vigorous investigation to hold accountable all who are criminally responsible.
We knew early on that a fraud of this magnitude could not have been the work of one person, and the investigation to date has borne that out. Seven defendants other than Bernard Madoff have been charged with serious offenses for their roles in carrying out and propping up the scheme.
The Madoff Investment Securities business was a web of deception that required a cast of supporting players. And just as the effort to locate assets continues, so does the effort to determine who else may be criminally responsible.
Today is a good day for a group of people who haven’t had much cause for optimism.