The trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed a motion last week in the U.S. Bankruptcy Court for the Southern District of New York seeking approval for an allocation of more than $123 million to the BLMIS Customer Fund and an authorization for another distribution of more than $87 million to victims.
A hearing on the motion has been scheduled for Jan. 28, 2026, at 10 a.m. EST.
The Town of Fairfield is among the 40,930 victims, many of whom included retirees and their retirement funds. The town was defrauded of nearly $3 million from the decades-long Ponzi scheme operated by the late Bernie Madoff, who died in 2021.
In 2013, the Town of Fairfield was awarded nearly $3 million by a Stamford Superior Court judge ruling in favor of the town’s claim against Tremont Partners Inc., an investment firm that indirectly invested money from the town’s retirement fund in the multi-billion-dollar Ponzi scheme – an overall loss to municipal pensions that topped $40 million.
Fairfield First Selectman Christine Vitale would not comment on the latest distribution to the town.
“With our next anticipated distribution, 1,531 accounts will be made whole,” said David Sheehan, Chief Counsel to the SIPA Trustee. “As our global efforts continue, we look forward to future significant recoveries and distributions.”
Irving Picard, trustee under the Securities Investor Protection Act. (SIPA), filed the motion on Dec. 11.
“Our next expected distribution is another milestone in the global Madoff Recovery Initiative,” Picard said. “Despite the odds, our legal team, led by David Sheehan, and backed by SIPC, continues to achieve meaningful results on behalf of BLMIS customers with allowed claims.”
When combined with the prior 16 distributions, the 17th distribution will equal 72.015% percent of each customer’s allowed claim amount, unless that claim has been fully satisfied. The aggregate amount distributed to eligible BLMIS customers will total approximately $14.67 billion, including approximately $850.4 million in advances committed by SIPC.
As of Oct. 31, 2025, the SIPA Trustee has recovered or reached agreements to recover approximately $14.833 billion.
The proposed distribution will be paid on claims relating to 767 BLMIS accounts and represents approximately 0.469% of their net equity claims, with an average payment amount of $114,553.90.
Additional funds recovered between Oct. 31, 2025, and Jan. 31, 2026 will be distributed to BLMIS customers with allowed claims as set forth in the motion.
No funds recovered in the Madoff Recovery Initiative are used to pay costs associated with the recovery. All trustee, legal, and accounting fees, as well as administrative expenses, are paid by SIPC.
