Justice Department to review halt in payout for Madoff victims

The U.S. Justice Department will review what has halted the distribution of $4 billion in a Ponzi scheme fund for the victims of Bernie Madoff, U.S. Rep. Vern Buchanan announced this week.

Buchanan, R-Longboat Key, sent a letter to Attorney General Jeff Sessions on May 31, urging him to speed up the repayment process.

One of every five victims was from Florida, according an analysis by the Miami Herald, and dozens were from Sarasota.

Although some victims have been paid recovered funds, the Madoff Victim Fund, created in December 2012, has not yet paid out to thousands of Madoff’s former clients. A firm that was supposed to distribute money from the fund has been paid more than $38 million, according to Buchanan.

“Money should be flowing to victims, not bureaucratic overhead,” he wrote.

This week, Deputy Attorney General Rod Rosenstein said the victims should be paid “as quickly as possible,” adding he would commit that he would look into the delay, according to Buchanan.

Buchanan said he was “pleased the Justice Department has agreed to review this matter.”

This story was originally published June 15, 2017 at 2:46 PM with the headline "Justice Department to review halt in payout for Madoff victims."