US Justice Department Gives $4,300,000,000 to 40,930 ‘History’s Largest Ponzi Scheme Victims

Tens of thousands of investors lost all they had in the biggest Ponzi scam ever, according to the U.S. Department of Justice (DOJ).

According to a news release, the DOJ has paid out over $4.3 billion to 40,930 victims of a fraud scheme run by Bernard L. Madoff over the period of ten years.

Madoff is well-known for operating a Ponzi scheme for over 17 years, defrauding investors out of roughly $65 billion from 127 different nations. The offender maintained a trustworthy image while offering respectable profits to entice individuals to invest in his company, Bernard L. Madoff Investment Securities LLC.

When investors panicked and withdrew their money in large quantities at the height of the 2008 Global Financial Crisis (GFC), only to discover that their money was being used to pay other investors, the plan fell apart.

Madoff was given a 150-year jail term in June 2009 for “running the largest fraudulent scheme in history.” In April 2021, he passed away at the age of 82 in a jail hospital.

Due to civil forfeiture charges against Madoff, his brother Peter B. Madoff, his co-conspirators, and his clients, including investors Carl Shapiro and Jeffry Picower, the DOJ obtained $2.6 billion. After banking behemoth JPMorgan Chase resolved allegations that it had “failed to carry out its legal obligations” while acting as Madoff’s principal bank, the agency also received $1.7 billion.

According to Southern District of New York Acting U.S. Attorney Edward Y. Kim,

“This office has never given up on seeking justice for the victims of the biggest Ponzi scheme in history.” We were able to reimburse 40,930 victims for over 94% of their losses. our tremendous effort shows that our office and MLARS (Money Laundering and Asset Recovery Section) are devoted to safeguarding and aiding crime victims, no matter how lengthy or difficult.

Also Read: FOIA Docs Indicate FDIC Went After Banks Using Ethereum.