Preparing for a Distribution: Reporting Your Prior Recoveries

The Department of Justice has to date approved 35,509 claims recommended by MVF, and we are now actively preparing for our first cash payout later this year. A "Final Determination Notice" ("FDN") has been mailed to each person with an approved claim. Those notices of approved claims include the amount of collateral recoveries that MVF's records show you have reported to MVF previously. The FDN states:

"If you have received additional recoveries that exceed this amount, then prior to the time of payment you must update your disclosure of your collateral recoveries. If you have not received any additional recoveries, you must still certify to MVF that no such recoveries were received."

Q1: I am still confused about what counts as a "collateral recovery". What is included?

MVF previously sent you a collateral recovery update request explaining that: "Collateral recoveries include bankruptcy distributions, litigation recoveries, settlement proceeds, insurance recoveries, or any other compensation received for your Madoff losses." Essentially, anything you received from anyone due to your Madoff loss is a collateral recovery. In particular, you need to report to MVF all payouts from the Madoff bankruptcy, as well as any proceeds you received as a result of the sale or assignment of your claim in either the bankruptcy or MVF proceedings.

If you invested in Madoff through a "mixed asset" investment vehicle that held both Madoff and non-Madoff investments, your later withdrawal or redemption of funds from your non-Madoff investments in such a vehicle is NOT a collateral recovery.

Q2: Please explain what I need to do.

More than 70% of MVF's approved claimants reported in their original claim that they had not received any recoveries on their fraud losses. The remaining 30% of approved claims had recoveries ranging from under 1% to over 90%. In either case, the FDN that you received showed the U.S. dollar amount of recoveries that MVF's records show. For some claims the amount shown on your FDN reflects amounts disclosed in your original claim form, and in some cases it reflects any updated information you may have provided since that time.

In order to process the approved claims for our upcoming payments, MVF needs to be sure that the amount of collateral recoveries for each approved claim is complete and accurate. Therefore, if the amount shown on your FDN is NOT complete, we need you to update or correct the information. Please provide this update no later than September 15, 2017.

If the amount shown on your FDN is correct, all we need is an email with your claim ID and confirmation that the amount in the FDN is "Still Correct", or "No Change".

Q3: How do I update my recovery information?

Set forth below is the question you filled out in Section VIII of Form IND:

Collateral Recovery Table

The easiest method for you to update your recovery information is to simply provide the same information to us in a letter or an email to the MVF helpdesk at Your email or letter should include:

  • Your Claim Number;
  • The amount of any new recoveries not included in the amount shown on your FDN;
  • Date(s) you received the additional funds; and
  • Source of the Recovery

If you can send a copy of any related documentation, that would be helpful but is not required.

Q4: What if I haven't had any recoveries since I filed my claim or all my recoveries are included in the amount shown on the FDN?

Just send us an email listing your claim ID number and confirming "Nothing New" or "Still Correct".

Q5: When should I send this email or otherwise notify MVF?

Not later than September 15, 2017.

Q6: What happens if I don't update you?

Department of Justice regulations governing the remission of forfeiture require that all collateral recoveries you have received be deducted from the amount of your claim for remission. Therefore, if we do not hear from you it may result in a hold being placed on checks that would otherwise be sent to you.

Also, if other claimants who invested through the same investment vehicle have reported recoveries from one or more sources and you have not reported any recoveries, we may need to hold up your payment while we seek further information. We do not want to have to put a hold on anyone's check, so please advise us that the amount shown on your FDN is still accurate, or give us an accurate updated amount.

© 2017 - RCB Fund Services, LLC.