It looks like investors burned by Bernard Madoff’s Ponzi scheme might see even more of their money again. The New York Times is reporting that prosecutors and the trustee trying to recover assets in the Bernard Madoff bankruptcy case announced a settlement that will add $7.2 billion to an already $2.3 billion cash fund that could go to compensate Madoff’s victims.
Irving H. Picard, the bankruptcy trustee, said at a press conference that “every penny” of the settlement will go to victims with valid claims and that he expects to start distributing funds by the end of the first quarter of 2011. The $7.2 billion is coming from the estate of Jeffrey Picower, one of Madoff’s biggest investors, who collected billions in returns that the trustee said were not genuine. Picower drowned at his home in Florida last year after suffering a heart attack while swimming.