U.S. Bankruptcy Judge Burton Lifland on Tuesday approved the transfer of $28.1 million to cover expenses tied to the liquidation of Bernard 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 Corp. previously agreed to transfer the funds, but the bankruptcy judge first had to approve the transfer.
BNY Mellon already transferred about $883,000 to cover costs tied to the liquidation.
Picard will oversee the liquidation 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.
Madoff liquidation trustee receives $28M for costs [AP via Forbes]
Meanwhile, Kevin Bacon, who we know by virtue of the KB Lawhad to have been affected by Madoff, is getting screwed.