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$1 Billion in Legal Fees in Madoff Recovery

October 20, 2015 | Posted in : Bankruptcy Fees / Expenses, Expenses / Costs, Fee Award, Fee Award Factors

A recent ABA Journal story, “$1B in Legal Fees for Recovery of Madoff Losses is a ‘Good Return on Investment’ Lawyer Says” reports that lawyers recovering money for victims of Bernard Madoff’s Ponzi scheme say total legal fees in the case could reach $1 billion.

In an interview with ABC News, court-appointed trustee Irving Picard of BakerHostetler said the fees are a “very good return on an investment,” given the “context of what’s going on in this case.”

Anyone who invested up to $1.16 million with Madoff will be made completely whole in the latest round of distribution payments, lawyers said in a motion filed in New York bankruptcy court.  Those who invested more could get back at least 61 cents on the dollar, according to Stephen Harbeck, president and CEO of the Securities Investor Protection Corp (SIPC).

So far, lawyers have recovered about $11 billion of $17 billion in losses.  The largest portion of that money--$7.2 billion—was turned over by the widow of alleged co-conspirator Jeffrey Picower.