Madoff victims should see refunds in 2011

NEW YORK, July 13 (UPI) -- Victims of disgraced New York investor Bernie Madoff should get refund checks soon, said the trustee handling funds collected in the massive Ponzi scheme.

New York Bankruptcy Judge Burton Lifland approved Picard's request Tuesday to put $2.6 billion of the $7.6 billion he collected in a customer fund, where he will begin making distributions, the New York Post reported Wednesday.

Checks from that account will be mailed to about 1,224 account-holders in the fourth quarter of this year, nearly three years after Madoff confessed to the multibillion-dollar fraud.

Ponzi victims will split 4 percent of the total monies collected -- $272 million -- for an average payment of $222,551, the Post said.

The bulk of the recovered money is tied up in court appeals and other disputes, including a fight over whether those who didn't lose principal deserve a share of the funds recovered, the Post said.

Madoff is serving a 150-year jail sentence.