Skip to content

Minnesotans reminded of deadline to file claims related to alleged Madoff Ponzi scheme

February 20, 2009

 

Minnesotans reminded of deadline to file claims related to alleged Madoff Ponzi scheme

FOR IMMEDIATE RELEASE:   February 20, 2009

Governor wrote to SEC Chairman regarding affected Minnesotans

Saint Paul - Governor Tim Pawlenty today reminded Minnesotans who were victims of the alleged Ponzi scheme perpetrated by Bernard Madoff that they must file a formal claim with the Securities Investor Protection Corporation (SIPC) by Wednesday, March 4. 

Last month, Governor Pawlenty wrote a letter to the Securities and Exchange Commission Chairman about the Madoff case and recently received a response from SEC Chairman Mary Schapiro.

"Some reports have estimated that Minnesotans may have lost $300 million as part of Madoff's alleged fraudulent activities," Governor Pawlenty said.  "On behalf of all Minnesotans, I have asked the SEC to ensure that victims receive restitution where appropriate.  An important first step is for all affected parties to file a claim by March 4."

The SIPC has mailed claim forms to Madoff's former customers.  Protection for assets in brokerage accounts is provided by the SIPC for up to $500,000 per account.  SIPC is encouraging anyone who believes they may have a claim against Madoff, either as a customer or creditor, to file by March 4. 

Madoff was arrested on December 11, 2008 and charged with securities fraud in what federal officials called a Ponzi scheme that could involve losses of more than $50 billion.   

SEC Chairman Mary Shapiro wrote in her letter to Governor Pawlenty, "While the amount of available compensation will be determined by SIPC through the claims process, the timely filing of a claim is an absolute prerequisite to recovery, as part of the SIPC process, of any assets from the Madoff firm."

Information including the notice, claim forms and related claims information are available for downloading on the trustee's Web site, http://www.madofftrustee.com , and on the SIPC Web site, http://www.sipc.org .