Madoff associate's widow to give up $7.2B

NEW YORK, Dec. 17 (UPI) -- U.S. authorities confirmed the widow of a Bernard Madoff associate will forfeit more than $7.2 billion her late husband withdrew from Madoff's firm.

Barbara Picower will pay $7,206,157,717 to settle cases against her late husband, Jeffry Picower's estate, U.S. Attorney for the Southern District of New York Preet Bharara said.

The Securities Investor Protection Corp. said the settlement is "by far" the largest civil forfeiture in U.S. history. Moreover, it recovers a significant amount of an estimated $20 billion lost by investors, the Justice Department said.

Picower of Palm Beach, Fla., is the widow of Jeffry Picower, a wealthy philanthropist who received handsome returns from his investments in Madoff's New York firm, BLMIS.

Authorities said Picower, associated with Madoff for 30 years, "knew or should have known that (he) was profiting from fraud because of the implausible high rates of return" on his investments.

The settlement adds to the $2.2 billion recovered so far in the case.

Bharara called the settlement "truly historic ... a game change for Madoff's victims."

"By returning every penny of the $7.2 billion her late husband received from BLMIS to help those who have suffered most, Barbara Picower has done the right thing," Bharara said.

Jeffry Picower was found dead of a heart attack in October 2009. Madoff, who's son Mark committed suicide Saturday, is serving a 150-year prison sentence.