The trustee in charge of the bankruptcy of Bernie Madoff's investment firm spent $26.9 million in the six months ended Sept. 30. In that time, it has recovered $849,000 for the victims of Madoff's Ponzi scheme.

The single largest expense for the period was $15.8 million in legal fees to trustee Irving Picard's law firm, Baker Hostetler, Bloomberg News reported.

Of the funds recovered, $771,000 came from Madoff investors who received payouts in the 90 days before the company went bankrupt.

Picard was appointed as trustee in 2008. He told U.S. bankruptcy Judge Burton Lifland that he recovered a total of about $1.5 billion for creditors.

Madoff, 72, is currently serving a 150-year prison sentence for directing the biggest Ponzi scheme in U.S. history.

Securities Investor Protection Corp. bears the cost of winding up the Madoff firm and pursuing money for creditors. So the costs will not reduce the amount of compensation available to Madoff investors.

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rderose

Lawyers = Liars. Why chase bad money with good money?

November 08 2010 at 3:21 PM Report abuse rate up rate down Reply
bob

these lawyers are the biggest crooks

November 02 2010 at 11:57 PM Report abuse rate up rate down Reply
PETE COSENZA

How about putting the lawyers in with Bernie!

November 02 2010 at 7:24 AM Report abuse rate up rate down Reply
carnab

That's typical.....lawyers were involved......unbelievable.....

November 01 2010 at 6:47 PM Report abuse +1 rate up rate down Reply
DAVE

$15.8 MILLION IN LEGAL FEES. I guess Madoff wasn't the only crook or crooks involved in this ponzi scheme. Why is it that everyone complains about the money Madoff swindled from his victims, but no one complains when the attorneys swindle money from the taxpayers? The securities investor protection corp bears the funding liability, how much to the taxpayers "contribute" to the attorney payroll dept of the securities protection corp?

November 01 2010 at 6:29 PM Report abuse +1 rate up rate down Reply
HotttStud

Another case of what can be done in the USA..meanwhile the government who should be watching is totally out to lunch..thanks OBAMA you sure know how to run the SEC

November 01 2010 at 6:10 PM Report abuse rate up rate down Reply
2 replies to HotttStud's comment
ANN CLAPS

Just for the information of the ignorant, these crimes by Madoff were committed long before Pres. Obama even ran for office!!! So snotty sarcastic uninformed comments Do Not Apply!!!! Pikkon 10

November 13 2010 at 2:59 PM Report abuse rate up rate down Reply
prettyface46

why blame obama, the mess was already there, he dosen;t work for the sec,

November 15 2010 at 8:00 PM Report abuse rate up rate down Reply
dess222

Is the article inferring that the trustee lied about what was collected? He said he collected $1.5 B.

November 01 2010 at 6:08 PM Report abuse rate up rate down Reply
Steve

Picard the trustee in the Madoff swindle spent $26.9 million to recover $849,000 for investors, then he charged 15.8 million in legal fees for his law firm. I lost $876,000 investing through Madoff and still haven't seen a dime. This "STINKS" as bad as Madoff. Irving Picard is taking all the money recovered for his law firm, and very few if any of the folks really hurting are getting nothing.

November 01 2010 at 3:50 PM Report abuse +2 rate up rate down Reply
Chris

I am confused... What in the world is the article saying. Did he recover 1.5 billion or 849,000.00? Any journalists on staff who know what they are doing?

November 01 2010 at 2:49 PM Report abuse +3 rate up rate down Reply
cbala

Lawyers screwed this country for the past 50 years, and in a few years the USA will be a 3rd world country and 99.9% of the money will be in the hands of the lawyers and people will still be blaming health care and doctors for everything !!!. As long as lawyers are ruling this country, there is no hope, we will soon be worse than India or vietnam.

November 01 2010 at 2:23 PM Report abuse +4 rate up rate down Reply