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Olo.Blmis.Timelineembedvertical2.8 Copy BLMIS LIQUIDATION TIMELINE 2008 2008 2008 2008 DEC 11 DEC 11 DEC 15 DEC 20 Bernard Madoff is arrested by The SEC files a complaint in the The U.S. District Court for the Less than one month after the the FBI and criminally charged District Court against defen- Southern District of New York discovery of the BLMIS fraud, with a multi-billion-dollar dants Madoff and Bernard L. appoints Irving H. Picard as SIPA the SIPA Trustee and his securities fraud scheme. Madoff Investment Securities Trustee for the liquidation of the counsel announce the recovery LLC (“BLMIS”) alleging that the Bernard L. Madoff Investment of $29 million from the Bank of defendants engaged in fraud Securities brokerage firm and New York, the first of the funds through investment advisor appoints Baker & Hostetler LLP stolen through the Ponzi scheme activities. as counsel to Mr. Picard. that are recovered. 2009 2009 2009 2009 JAN 2 JAN 2 APR 28 MAY 18 More than 8,000 claims forms The Trustee publishes notices in Castor Pollux Securities wins The SIPA Trustee files a lawsuit are mailed to victims of the major newspapers to victims the Court-approved auction of seeking the return of $3.2 billion fraud, with instructions for filing and creditors regarding the the BLMIS market-making from Fairfield Greenwich Group, by initial deadlines of March 4, liquidation of BLMIS. business assets for $1 million at one of the largest alleged 2009 and July 2, 2009; claims closing and up to $24.5 million in “feeder funds.” forms are also available for deferred compensation through download from the Internet. December 2013. 2009 2009 2009 2009 MAY 26 JUN 9 JUN 22 JUL 2 Optimal Investment Services The Honorable Judge Burton R. Complaints are filed against The period allowed for SA agrees to settle lawsuits Lifland of the Bankruptcy Court Cohmad Securities Corporation submitting claims closes. brought by the Trustee and pays for the Southern District of New seeking to recover more than $235 million to the Customer Fund. York orders the substantive $100 million in fees paid by consolidation of the Estate of BLMIS to the alleged feeder fund Bernard L. Madoff into the SIPA that helped channel billions of Proceeding of Bernard L. Madoff dollars and more than a thousand Investment Securities LLC. customers to Madoff. 2009 2009 2009 2009 JUL 29 AUG 5 OCT 2 OCT 28 The Trustee files a lawsuit In an effort to speed the delivery A lawsuit is filed against four The total amount of SIPC against Ruth Madoff, the wife of funds to BLMIS victims, SIPC Madoff family members seeking advances exceeds the of Bernard L. Madoff, seeking agrees to pay the undisputed to recover approximately $200 half-billion-dollar mark. This to recapture approximately portion of a claim (up to $500,000) million in customer funds amount now exceeds the total $45 million in funds transferred even if the customer has allegedly diverted to the family of all prior SIPC advances to her or to companies in objected to the SIPA Trustee’s members or spent on their made since SIPA was passed which she was an investor. determination of the claim. behalf. by Congress in 1970. BLMIS LIQUIDATION TIMELINE 2009 2010 2010 2010 NOV 13 JAN 27 MAR 1 AUG 3 To avoid devaluation of a The Trustee announces a The Honorable Judge Burton Vizcaya Partners is ordered to major asset (an Embraer $220 million agreement with R. Lifland of the Bankruptcy pay back $180 million it withdrew Legacy 600), Chapter 11 Jeanne Levy-Church and Court for the Southern District from BLMIS in the five months proceedings begin to secure Francis N. Levy, returning that of New York upholds the SIPA before the fraud came to light. full ownership of the BLMIS- amount of money to the Trustee’s “net equity” Approximately $73 million owned BLM Air Charter LLC. Customer Fund. methodology for determining deposited in Gibraltar is request- eligibility for distributions from ed returned to the United States the Customer Fund. to help satisfy the judgment. 2010 2010 2010 2010 NOV 1 NOV 24 NOV 26 DEC 2 The SIPA Trustee announces the The SIPA Trustee and his The SIPA Trustee and his The SIPA Trustee and his continuation and extension of counsel file a lawsuit against counsel file 40 lawsuits counsel file a lawsuit against JP the Hardship Program to UBS AG and related entities against relatives of Madoff Morgan Chase, Madoff’s primary facilitate understanding of the alleging 23 counts of financial and his wife, as well as former banker, and related entities, financial circumstances of fraud and misconduct in both BLMIS employees and their seeking more than $6.5 billion in avoidance action complainants. common law and bankruptcy relatives, seeking to recover fees, profits, avoidable transfers, causes of action, seeking the approximately $69 million in and damages. recovery of at least $2 billion. fraudulent transfers. 2010 2010 2010 2011 DEC 7 DEC 10 DEC 17 MAY 4 The SIPA Trustee announces a A RICO complaint is filed A $7.2 billion settlement agree- The SIPA Trustee files a motion $550 million recovery agreement against the Medici Enterprise ment is reached with the estate for the allocation of $2.6 billion with the family of Carl Shapiro. defendants, including Sonja of Jeffry Picower; $5 billion is to the Customer Fund and for The recovery is appealed and Kohn, Bank Medici and related allotted to the Customer Fund the initial, pro rata, interim the $550 million is held in escrow, entities, including UniCredit and and $2.2 billion to the govern- distribution of $272 million. pending a ruling on the appeal. Bank Austria. The action seeks ment as forfeiture. The $5 billion to recover $19.6 billion in for the Customer Fund is under damages (trebled under RICO). appeal. 2011 2011 2011 2011 MAY 9 JUNE 24 JUL 12 JUL 28 A settlement with Fairfield An amended complaint filed The Bankruptcy Court approves The settlement with the Sentry effectively increases against JPMC expands allega- the SIPA Trustee's motion for Tremont Group, the future Customer Fund payments tions, seeks a jury trial and an initial pro rata interim second-largest Madoff by nearly $1 billion and strength- increases minimum damages distribution of 4.602 percent. feeder fund network, ens claims against the owners sought to at least $19 billion increases the Customer and management of the Fairfield in addition to approximately Fund by $1.025 billion and Funds and hundreds of subse- $1 billion in fraudulent transfers facilitates future recoveries quent transferees. and other claims. for feeder fund investors. BLMIS LIQUIDATION TIMELINE 2011 2011 2011 2011 AUG 16 OCT 4 OCT 5 DEC 21 The U.S. Court of Appeals for The United States Bankruptcy The first pro rata interim A $326 million settlement with the Second Circuit upholds the Court for the Southern District of distribution to BLMIS customers the United States of America, on Trustee’s definition of net equity New York approved a settlement whose claims have been behalf of the Internal Revenue as applied to the Madoff Ponzi with Mount Capital Fund, a allowed by the Trustee Service, was approved by the fraud, an important step forward BLMIS Feeder Fund, which commences. United States Bankruptcy Court for customers with allowed returned $43.5 million to the for the Southern District of New claims. Customer Fund. York. 2012 2012 2012 2012 MAR 19 MAR 26 JUN 25 JUL 16 A $162 million settlement The U.S. District Court upholds United States Supreme Court The deadline for further appeals agreement is reached with the Bankruptcy Court’s approval denies petitions for certiorari, of the $7.2 billion Picower Sterling Equities. The settlement of the $5 billion settlement with thereby upholding net equity forfeiture to the United States sum is equal to 100 percent of the estate of Jeffry Picower and methodology in BLMIS Government expires, making the fictitious profits withdrawn also upholds the injunction liquidation. the forfeiture order final, and the by the Sterling parties during the barring claims against the $5 billion settlement payment is six-year period prior to the Picower estate by third parties. released to the SIPA Trustee. BLMIS liquidation proceeding. 2012 2012 2012 2013 AUG 22 SEPT 19 DEC 21 MAR 13 Bankruptcy Court approves the The second pro rata interim The U.S. Court of Appeals for the The U.S. Bankruptcy Court SIPA Trustee’s motion for distribution of recoveries begins, Second Circuit upholds the SIPA for the Southern District of allocation and second interim which is approximately 33.5 Trustee’s $220 million settlement New York approves the SIPA distribution of 33.5 percent of percent of the allowed claims with the Norman F. Levy family. Trustee's allocation and each allowed claim. amount of each individual Absent additional appeals, the distribution motion for a third account. settlement will be made pro rata interim distribution available for distribution. of 4.721 percent. 2013 2013 2013 2013 MAR 29 SEPT 10 SEPT 17 OCT 9 The third pro rata interim The U.S. Bankruptcy Court for U.S. Bankruptcy Court for the SIPA Trustee files petition for distribution of recoveries the Southern District of New Southern District of New York writ of certiorari with the United begins, which is approxi- York approves the SIPA approves $97.8 million settlement States Supreme Court seeking mately 4.721 percent of the Trustee’s motion to deny with Maxam Absolute Return review of lower court decisions allowed claims amount of time-based damages Fund and other related funds/ regarding banks and their each individual account.
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