Actors Bacon, Sedgwick had money invested with Madoff

Actor Kevin Bacon and his wife, actress Kyra Sedgwick, were investors with Bernie Madoff, who is accused of running an elaborate Ponzi scheme that duped investors out of potentially $50 billion.

Bacon's publicist, Allen Eichhorn, confirmed Tuesday that the couple had investments with Madoff. He wouldn't say how much money they might have lost.

Other Hollywood victims have included a charity linked to director Steven Spielberg and his DreamWorks partner Jeffrey Katzenberg, and screenwriter Eric Roth, whose credits include Forrest Gump and The Curious Case of Benjamin Button.

Also in the Madoff case: A U.S. Bankruptcy Court judge approved the transfer of $28.1 million to cover expenses tied to the liquidation of Madoff's investment firm.

Irving Picard, the trustee presiding over the liquidation of Madoff's investment firm, said he needed the $28.1 million to cover employee salaries and other costs, according to court documents. Bank of New York Mellon previously agreed to transfer the funds, but Bankruptcy Judge Burton Lifland first had to approve the transfer.

Richard Bernard, a lawyer with Baker Hostetler who was representing Picard at the hearing, said the transferred funds will not affect any recovery for investors. The funds are being transferred from one account that had already been frozen. Lawyers continue to investigate if Madoff had any other accounts that have not yet been frozen, Bernard added.

BNY Mellon already transferred about $883,000 to cover costs tied to the liquidation.

Picard will oversee the liquidation of assets from Madoff's investment firm as the Securities Investor Protection Corp. attempts to help investors recoup their money. SIPC was created by Congress in 1970 to protect investors when a brokerage firm fails and cash and securities are missing from accounts. Funds can be used to satisfy the remaining claims of each customer up to a maximum of $500,000. The figure includes a maximum of up to $100,000 on claims for cash.

SIPC said in a statement that claim forms are expected to be sent to investors and creditors no later than Jan. 9. The forms will also be available for download on SIPC's website.

Madoff faces a Wednesday deadline to provide the Securities and Exchange Commission with a written accounting of his assets, liabilities and properties. The report will likely provide insight into how much money investors could recover.

Madoff agreed to list all assets, funds or property he held and the names and locations of entities, bank accounts, brokerage accounts, investments or assets held by his business, Bernard L. Madoff Investment Securities.

On Monday, a judge presiding over civil claims against Madoff said he may be willing to consider extending relief to those who invested in Madoff's business through third parties. To consider allowing investors who invested through third parties to file claims with SIPC, U.S. District Judge Louis Stanton said he needs a formal application and briefing from SIPC, the Securities and Exchange Commission, a trustee for Madoff's business and representatives of investors.

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