On Tuesday, Dec. 23, US Bankruptcy Court Judge Burton Lifland approved a liquidation plan in the Madoff case proposed by the Securities Investor Protection Corp. The NY Post reports that the maximum compensation victims are eligible for under the plan is $500,000 worth of securities, with no more than $100,000 of that $500,000 in the form of cash. In addition, the court also approved SIPC’s plan to restrict claims to those investors who can prove they sent money to Madoff in the 12 months prior to his Dec. 11 arrest.
Steve Harbeck, chief executive of the SIPC, told the NY Post that the compensation limits were “the statutory rules of the SIPC.” Madoff victims seeking more than compensation will need to pursue separate lawsuits or join in one of the many class action claims that have already arisen arisen out of the scandal.
Harbeck also stated that SIPC will be mailing claim forms to the thousands of customers he believes are eligible for SIPC compensation. “We will really be able to get this thing moving now,” he said.
The SIPC website now states that:
Irving H. Picard, the Trustee, will mail claim forms by no later than January 9, 2009, to customers and creditors of Madoff. In addition to being mailed, the forms will be available for downloading off of this site and www.madofftrustee.com. To make a claim against Madoff, you must use the Madoff claim form. You may not use the claim forms provided on this Web site for other SIPC liquidation proceedings.