Madoff Liquidation Legal and Professional Fees Hit $823 Million ... and Rising - Compliance Week:
by Bruce Carton
Almost exactly one year ago, The Wall Street Journal reported that the BakerHostetler, the law firm working on behalf of the trustee responsible for the liquidation of Bernard L. Madoff Investment Securities LLC., had already been paid more than $300 million for its work on the Madoff matter.'via Blog this'
Fast forward one year. According to an article in today's WSJ, BakerHostetler has now earned over $463 million for its work on the Madoff matter, and the total amount of approved legal and other professional fees for the Madoff liquidation now stands at $823.68 million. The hundreds of millions of dollars going out to lawyers and other professionals for the Madoff liquidation are paid by the Securities Investor Protection Corp.
In his application for the latest round of fees filed last month, BakerHosteler's Irving Picard, the Madoff trustee, wrote that through "hundreds of thousands of hours" of work, he and his team have "successfully recovered, or reached agreements to recover, more than $9.35 billion as of July 31, 2013—more than 53% of the $17.5 billion of principal lost in the Ponzi scheme by those who filed claims—for the benefit of all customers of BLMIS with an allowed claim."
Picard has previously estimated that by the end of 2014, the legal and professional fees for the liquidation may hit $1 billion. With the tally now at $823 million and rising, that estimate looks like it is now easily in sight.