The US Department of Justice's Madoff Victim Fund is now, for the second time, distributing funds forfeited to the US Government in connection with the Bernard L Madoff Investment Securities LLC (BLMIS) fraud scheme to 21,000 HNW victims all over the globe, bringing the total distribution to date up to more than US$1.2 billion.

This distribution represents the second in a series of payments that will eventually return more than $4 billion to victims as compensation for the losses they suffered from the collapse of BLMIS. The MVF has received more than 65,000 petitions from victims in 136 countries.

In one of the most notorious financial crimes in history, Bernie Madoff robbed tens of thousands of individuals, pension plans, charitable organisations and others, all the while funding a lavish personal lifestyle. Through the use of asset forfeiture, the Department of Justice has recovered more than $4 billion of Madoff's fraudulent assets. Last June, the department approved more than 39,000 petitions for compensation. It hopes that this new distribution will provide significant relief.

On 12 March 2009, Madoff pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world's largest Ponzi scheme, benefiting himself, his family and select members of his inner circle. On 29 June 2009, US District Judge Denny Chin sentenced Madoff to 150 years in prison and ordered him to forfeit $170.799 billion, although it seems unlikely that he could level any credible threat at that stage against Madoff for non-compliance.

Of the $4.05 billion, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family and from civil and criminal forfeiture actions against Bernie and Peter Madoff and their cohorts in crime.