The deadline for making compensation claims for the victims of convicted fraudster, Bernie Madoff, has been extended as many potential victims have only recently learned of the claims process.
The deadline for making claims for compensation in the Madoff affair had been set at Feb. 28. However, today, U.S. attorney for Manhattan, Preet Bharara, announced that the deadline for petitions to the Madoff Victim Fund has been extended to the end of April.
The UK’s Financial Conduct Authority (FCA) reminded investors today that those with investments linked to Madoff may have a claim for compensation. It advises investors who think that they might have a claim to check whether they are eligible against criteria set by the U.S. Department of Justice (DoJ) on its website dedicated to the compensation process (www.madoffvictimfund.com). The DoJ has been appointed to oversee the Madoff victim claims process.
“We are pleased that more and more potentially eligible victims of the Madoff crimes have become aware of MVF and our application process in recent weeks,” notes the special master for the fund, Richard Breeden, in a letter to Madoff investors. “We appreciate the efforts of many banks and custodians to notify potentially eligible clients of the opportunity to seek a recovery from MVF. As a result, the pace of claims has accelerated dramatically.”
However, he also notes that many potentially-eligible victims only recently learned of the existence of the fund; and, given the time it takes to assemble supporting documentation, the MVF and DoJ decided that an extension of the filing deadline “would be appropriate to enable additional victims to complete an application.”
So far, the fund has received more than 9,000 claims from individuals in 75 countries, it reports. And, the average claim comes with more than 90 pages of backup documentation.
“More than 90% of the claims to date have been received from individuals who either did not file in the bankruptcy, or who had their claim denied as an “indirect” investor. Of the claims received, more than 70% have come from individuals who have not yet recovered anything for their losses,” Breeden reports. “This is a tragic statistic, reflecting an enormous gulf between a few investors who have already recovered all their losses, and a much larger group who have not recovered much if anything. MVF will use its significant resources to help all victims of these vile crimes.”