Bernard L. Madoff Investment Securities LLC

Bernard L. Madoff Investment Securities LLC ran the largest known Ponzi scheme. Madoff pleaded guilty on 12 March 2009 to an eleven-count information^S2 and was sentenced on 29 June 2009 to 150 years in prison with forfeiture of US$170,799,000,000^S1. The SEC Office of Inspector General found the agency had ample complaints but never ran a competent investigation^S4. Madoff died in federal custody on 14 April 2021^S5. Recovery runs on two tracks. The Justice Department's Madoff Victim Fund paid over US$4.3 billion, about 93.71% of losses, in a final 2024 distribution^S3. The SIPA Trustee recovered about US$15.509 billion and reached 72.015% of allowed claims by late 2025^S6^S7.

Also known as: BLMIS, Madoff Securities
Headquarters: United States
Records from: United States
Current status: Bernard L. Madoff Investment Securities LLC was wound down after the December 2008 collapse of the Ponzi scheme. The firm is in a SIPA liquidation before the US Bankruptcy Court in New York, with Trustee recoveries of about US$15.509 billion as of 23 October 2026^S7. Bernard Madoff died in federal custody on 14 April 2021^S5.

Scope. This record covers the broker-dealer and investment advisory firm and the criminal and recovery records tied to the Ponzi scheme. It does not cover feeder funds or related family and employee prosecutions, except where the recovery figures touch them.

Claims assessed

4 claims. Scores grade the evidence for each claim, not the organization.

Supported96
Prosecutors said Bernard Madoff pleaded guilty to an eleven-count criminal information in March 2009 and was sentenced in June 2009 to 150 years in prison with forfeiture of US$170,799,000,000.
Regulator statement, 29 June 20093 records citedFraud
Outdated88
At the March 2009 plea a prosecutor said that given the nature and length of the scheme, victims might recover only a small fraction of their losses.
Regulator statement, 12 March 20093 records citedCorporate status
Supported82
The SEC Office of Inspector General found that the agency received credible complaints about Madoff but never performed a thorough investigation and could have uncovered the scheme before he confessed.
Official report, August 20093 records citedMarket conduct
Supported77
The SIPA Trustee reported recoveries of about US$15.509 billion for BLMIS customers and that distributions reached 72.015% of each allowed claim.
Company statement, 11 December 20252 records citedCorporate status

Cases and proceedings

United States v. Bernard L. MadoffUS District Court for the Southern District of New York. Criminal. No. 09 Cr. 213 (DC).Stage: Final. Guilty plea and sentence entered, no appeal, defendant deceased.
- 12 March 2009 Guilty plea to an eleven-count information^S2
- 29 June 2009 Sentenced to 150 years and US$170.8 billion forfeiture^S1
Securities Investor Protection Corporation v. Bernard L. Madoff Investment Securities LLCUS Bankruptcy Court for the Southern District of New York. Insolvency. Adv. Pro. No. 08-01789 (SMB).Stage: SIPA liquidation open. Interim distributions continuing.
- 11 December 2025 Seventeenth distribution brings the total to 72.015% of allowed claims^S6

Revision history

25 October 2026 Profile and 4 assessments first published. Records checked to 25 October 2026.

Source records

S2Tier A Bernard L. Madoff Pleads Guilty to 11-Count Criminal Information and Is Remanded Into CustodyUS Attorney's Office, Southern District of New York (via FBI New York). Government press release. 12 March 2009.Supports the guilty plea to eleven felony counts and the prosecutor forecast on recovery. Does not state the scheme's duration.
S1Tier A Bernard Madoff Sentenced to 150 Years in PrisonUS Attorney's Office, Southern District of New York (via FBI New York). Government press release. 29 June 2009.Supports the 150-year sentence and the US$170,799,000,000 forfeiture. Does not give a final net loss figure.
S6Tier B Madoff Trustee Requests Allocation of More Than $123 Million to Customer Fund and Court Approval to Distribute More Than $87 Million to BLMIS Customers with Allowed ClaimsSecurities Investor Protection Corporation (SIPC). Company statement. 11 December 2025.Supports the seventeenth distribution reaching 72.015% of each allowed claim. Reports a Trustee recovery of about US$14.833 billion as of 31 October 2025.
S7Tier B Recoveries, Distributions and SIPC CommitmentOffice of the SIPA Trustee for BLMIS (Irving H. Picard, BakerHostetler). Company statement. 23 October 2026.Supports the Trustee recovery of about US$15.509 billion as of 23 October 2026. Does not state total allowed claims or an overall recovery percentage.
S5Tier C Ponzi schemer Bernie Madoff dies in prison at 82Associated Press (Michael Balsamo and Tom Hays), via OPB. Press report. 14 April 2021.Supports the date, place and age of Madoff's death in federal custody. Cause given as natural causes by an anonymous source.
S4Tier A Investigation of Failure of the SEC To Uncover Bernard Madoff's Ponzi Scheme (Executive Summary, Case No. OIG-509)US Securities and Exchange Commission, Office of Inspector General. Audit report. August 2009.Supports the finding that the SEC had ample complaints and never ran a competent investigation. An internal watchdog report, not a court ruling.
S3Tier A Justice Department's 10th Distribution Brings Total Provided to Over $4.3B in Nearly Full Recovery to Over 40,000 Victims in Madoff Ponzi SchemeUS Department of Justice, Office of Public Affairs. Government press release. 30 December 2024.Supports the MVF total of over US$4.3 billion and the 93.71% recovery of fraud losses for MVF victims. This is a separate track from the SIPA Trustee.