Too Many Madoff Victims, Not Enough Money to Go Around, U.S. Official Says

SIPC and Madoff Victims

Days after SEC Chairman Schapiro testified there are not enough funds to repay former Madoff investors, victims received a notice from the court that Picard and his firm submitted their compensation and service charges. The fees include $14,662,319 for Baker & Hostetler LLP and $759,228 for Picard. Legal fees are expected to be paid out of SIPC funds.

Many Madoff investors expressed outrage that SIPC can find the money to pay attorney fees, but not them.

"The issue is not that there isn't enough money," said Richard Friedman, a Madoff investor waiting to be reimbursed. "The issue is SIPC doesn't want to pay Madoff investors what they're due and they're using having no money as an excuse,"

At the hearings, Chairman Schapiro underscored hers and the government's commitment not to turn their backs on the Madoff victims.

"I am committed to working as aggressively as we possibly can with SIPC to take the most expansive possible view of how to repay these claims and to do it in as quick a fashion as they possibly can," the Chairman assured members of Congress.

But for Madoff victims who continue to fight for what they believe is owed to them, the government isn't acting fast enough.

"The SEC is playing games and they're working very slowly in processing the claims," said Friedman. "At this rate it'll take eight years to settle this and that's not acceptable."

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