Some Madoff Investors May Get Funds in Months

Some of the investors who lost money in an alleged $50 billion fraud run by Bernard Madoff may be able to recover funds within the next few months, the president of the Securities Investor Protection Corp said on Wednesday.

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"That's when we hope that some of the simpler claims can be resolved," SIPC President Stephen Harbeck said.

SIPC is a non-profit agency set up by Congress to maintain a fund to help investors who had accounts at brokerage firms that failed. The fund, supported by broker dealer assessment fees, has $1.6 billion.

SIPC has mailed more than 8,000 applications to Madoff investors so they can file claims for any money they may have lost.

Harbeck said it was too early to say how many investors had been defrauded, adding that he would have a better idea within six months.

Madoff has been accused defrauding investors, banks, and charities around the world.

Harbeck said SIPC would meet with the U.S. Securities and Exchange Commission later on Wednesday to discuss the Madoff case and how claims would be satisfied.

SIPC charges member firms a fee of $150 a year, which has not changed since 1995. Harbeck said the fee has been sufficient to cover the agency's purpose, but he added, "We certainly have to rethink that."

SIPC has a $1 billion line of credit with the U.S. Treasury Department. A trustee has identified more than $830 million in liquid assets related to Madoff's investment firm that may be subject to recovery and is searching for more.

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