Latest news with #Madoff
CNN
01-07-2025
- Business
- CNN
He hasn't played in MLB for more than two decades. One team is paying him $1.2 million a year until 2035
He hasn't picked up a professional baseball glove in 24 years, but he's still picking up a paycheck – and a hefty one at that. It's July 1, which for New York Mets fans means it's Bobby Bonilla Day. The former slugger retired in 2001 with the St. Louis Cardinals, but he has been collecting a check of nearly $1.2 million from the Mets every year on July 1 for more than a decade. The deal is part of a contract negotiated by Bonilla's agent Dennis Gilbert, which will pay Bonilla $1,193,248.20 every year until 2035. Bonilla, a former All-Star who last played with the Mets in 1999, will be 72 when his contract with the team expires. How was Gilbert able to secure such a sweet deal for his client? They can both thank disgraced financier Bernie Madoff and former Mets owner Fred Wilpon. The Mets wanted to part ways with Bonilla in 1999, but he had $6 million left on his contract. Wilpon believed he was getting a huge return on his investments through Madoff but the Mets owner turned out to be a victim of Madoff's infamous Ponzi scheme. Instead of paying Bonilla outright, Wilpon opted to defer payments so that the money could be unwittingly invested into Madoff's Ponzi scheme. Bonilla's agent Gilbert negotiated with the team to defer payments until 2011, with an 8% annual interest rate. Madoff was the mastermind of the most notorious Ponzi scheme in history. A Ponzi scheme is a form of fraud that uses funds from more recent investors to pay profits to earlier investors, leading them to believe that their investments are part of a successful enterprise. Madoff, who died in 2021, was serving 150 years in prison for the multibillion-dollar scheme that he ran for decades. In total, Bonilla will walk away with a $29.8 million payday because of Wilpon's blunder. Players being paid over a long period of time isn't uncommon in MLB, with contracts often deferring money down the line. Most notably recently, after the Los Angeles Dodgers signed Japanese two-way star Shohei Ohtani to a 10-year, $700 million contract in 2023, Ohtani decided to annually defer $68 million of his $70 million average salary. That means Ohtani will be paid $2 million a year over the contract and the deferrals – totaling $680 million – will begin in 2034. Starting then, Ohtani will receive $68 million per year from the Dodgers until 2043. The Dodgers have made deferring payments a common theme in recent times, also doing so when signing Blake Snell and Tommy Edman. But this idea has been around for a long time now, after it was first popularized by 'The Dolgoff Plan' in the 1960s when an accountant, Ralph Dolgoff, helped the American Basketball Association (ABA) compete with the NBA by allowing teams to offer payments spread over multiple years in an attempt to attract players with the appeal of long-term security. So while Mr. Bonilla is likely one of the most famous beneficiaries of deferred payment schemes, he is not the first and will most certainly not be the last.
CNN
01-07-2025
- Business
- CNN
He hasn't played in MLB for more than two decades. One team is paying him $1.2 million a year until 2035
He hasn't picked up a professional baseball glove in 24 years, but he's still picking up a paycheck – and a hefty one at that. It's July 1, which for New York Mets fans means it's Bobby Bonilla Day. The former slugger retired in 2001 with the St. Louis Cardinals, but he has been collecting a check of nearly $1.2 million from the Mets every year on July 1 for more than a decade. The deal is part of a contract negotiated by Bonilla's agent Dennis Gilbert, which will pay Bonilla $1,193,248.20 every year until 2035. Bonilla, a former All-Star who last played with the Mets in 1999, will be 72 when his contract with the team expires. How was Gilbert able to secure such a sweet deal for his client? They can both thank disgraced financier Bernie Madoff and former Mets owner Fred Wilpon. The Mets wanted to part ways with Bonilla in 1999, but he had $6 million left on his contract. Wilpon believed he was getting a huge return on his investments through Madoff but the Mets owner turned out to be a victim of Madoff's infamous Ponzi scheme. Instead of paying Bonilla outright, Wilpon opted to defer payments so that the money could be unwittingly invested into Madoff's Ponzi scheme. Bonilla's agent Gilbert negotiated with the team to defer payments until 2011, with an 8% annual interest rate. Madoff was the mastermind of the most notorious Ponzi scheme in history. A Ponzi scheme is a form of fraud that uses funds from more recent investors to pay profits to earlier investors, leading them to believe that their investments are part of a successful enterprise. Madoff, who died in 2021, was serving 150 years in prison for the multibillion-dollar scheme that he ran for decades. In total, Bonilla will walk away with a $29.8 million payday because of Wilpon's blunder. Players being paid over a long period of time isn't uncommon in MLB, with contracts often deferring money down the line. Most notably recently, after the Los Angeles Dodgers signed Japanese two-way star Shohei Ohtani to a 10-year, $700 million contract in 2023, Ohtani decided to annually defer $68 million of his $70 million average salary. That means Ohtani will be paid $2 million a year over the contract and the deferrals – totaling $680 million – will begin in 2034. Starting then, Ohtani will receive $68 million per year from the Dodgers until 2043. The Dodgers have made deferring payments a common theme in recent times, also doing so when signing Blake Snell and Tommy Edman. But this idea has been around for a long time now, after it was first popularized by 'The Dolgoff Plan' in the 1960s when an accountant, Ralph Dolgoff, helped the American Basketball Association (ABA) compete with the NBA by allowing teams to offer payments spread over multiple years in an attempt to attract players with the appeal of long-term security. So while Mr. Bonilla is likely one of the most famous beneficiaries of deferred payment schemes, he is not the first and will most certainly not be the last.
USA Today
05-06-2025
- Business
- USA Today
Bernie Madoff victims to recoup $498 million in settlement, recovery hits $15.26 billion
Jonathan Stempel Reuters Former customers of the late Ponzi schemer Bernard Madoff will recoup $498.3 million under a settlement on Wednesday with the liquidators of two Luxembourg funds, boosting their recovery to about $15.26 billion. The Luxembourg Investment Fund and Luxembourg Investment Fund U.S. Equity Plus had invested exclusively with Bernard L. Madoff Investment Securities for three years before Madoff's firm collapsed in December 2008. Irving Picard, the trustee liquidating Madoff's firm, said the $498.3 million represents all transfers that the Luxembourg funds received from the firm. The funds will also give the Madoff firm's bankruptcy estate 15% of proceeds from their lawsuit in Luxembourg against the Swiss bank UBS UBSG.S. They are expected to receive $45.1 million on their own claim against the estate. The funds did not admit wrongdoing. Need a break? Play the USA TODAY Daily Crossword Puzzle. Who was Bernie Madoff?: Who did his Ponzi scheme impact and how did he get caught? Court approval is required, and a June 25 hearing has been scheduled. A lawyer for the Luxembourg funds did not immediately respond to requests for comment. Prior to Wednesday's settlement, Picard recovered $14.76 billion for Madoff customers, whose losses he has estimated at $17.5 billion. Payouts go to 2,656 customers whose claims he deemed valid. The payouts are separate from the $4.3 billion awarded by the U.S. government-created Madoff Victim Fund to 40,930 individuals, schools, charities and pension plans. These recipients included customers, and victims who lost money indirectly through Madoff, including in "feeder funds." Madoff concealed his fraud for decades before confessing to his sons one day after his firm's 2008 Christmas party. He pleaded guilty to 11 criminal charges and was sentenced to 150 years in prison, with the sentencing judge calling Madoff's crimes "extraordinarily evil." Madoff died in prison at age 82 in April 2021. Reporting by Jonathan Stempel in New York; Editing by Rod Nickel
Reuters
04-06-2025
- Business
- Reuters
Bernie Madoff customers to recoup $498 million, payout tops $15 billion
NEW YORK, June 4 (Reuters) - Former customers of the late Ponzi schemer Bernard Madoff will recoup $498.3 million under a settlement on Wednesday with the liquidators of two Luxembourg funds, boosting their recovery to about $15.26 billion. The Luxembourg Investment Fund and Luxembourg Investment Fund U.S. Equity Plus had invested exclusively with Bernard L. Madoff Investment Securities for three years before Madoff's firm collapsed in December 2008. Irving Picard, the trustee liquidating Madoff's firm, said the $498.3 million represents all transfers that the Luxembourg funds received from the firm. The funds will also give the Madoff firm's bankruptcy estate 15% of proceeds from their lawsuit in Luxembourg against the Swiss bank UBS (UBSG.S), opens new tab. They are expected to receive $45.1 million on their own claim against the estate. The funds did not admit wrongdoing. Court approval is required, and a June 25 hearing has been scheduled. A lawyer for the Luxembourg funds did not immediately respond to requests for comment. Prior to Wednesday's settlement, Picard recovered, opens new tab $14.76 billion for Madoff customers, whose losses he has estimated at $17.5 billion. Payouts go to 2,656 customers whose claims he deemed valid. The payouts are separate from the $4.3 billion awarded by the U.S. government-created Madoff Victim Fund, opens new tab to 40,930 individuals, schools, charities and pension plans. These recipients included customers, and victims who lost money indirectly through Madoff, including in "feeder funds." Madoff concealed his fraud for decades before confessing to his sons one day after his firm's 2008 Christmas party. He pleaded guilty to 11 criminal charges and was sentenced to 150 years in prison, with the sentencing judge calling Madoff's crimes "extraordinarily evil." Madoff died in prison at age 82 in April 2021.
Yahoo
04-06-2025
- Business
- Yahoo
Bernie Madoff customers to recoup $498 million, payout tops $15 billion
By Jonathan Stempel NEW YORK (Reuters) -Former customers of the late Ponzi schemer Bernard Madoff will recoup $498.3 million under a settlement on Wednesday with the liquidators of two Luxembourg funds, boosting their recovery to about $15.26 billion. The Luxembourg Investment Fund and Luxembourg Investment Fund U.S. Equity Plus had invested exclusively with Bernard L. Madoff Investment Securities for three years before Madoff's firm collapsed in December 2008. Irving Picard, the trustee liquidating Madoff's firm, said the $498.3 million represents all transfers that the Luxembourg funds received from the firm. The funds will also give the Madoff firm's bankruptcy estate 15% of proceeds from their lawsuit in Luxembourg against the Swiss bank UBS. They are expected to receive $45.1 million on their own claim against the estate. The funds did not admit wrongdoing. Court approval is required, and a June 25 hearing has been scheduled. A lawyer for the Luxembourg funds did not immediately respond to requests for comment. Prior to Wednesday's settlement, Picard recovered $14.76 billion for Madoff customers, whose losses he has estimated at $17.5 billion. Payouts go to 2,656 customers whose claims he deemed valid. The payouts are separate from the $4.3 billion awarded by the U.S. government-created Madoff Victim Fund to 40,930 individuals, schools, charities and pension plans. These recipients included customers, and victims who lost money indirectly through Madoff, including in "feeder funds." Madoff concealed his fraud for decades before confessing to his sons one day after his firm's 2008 Christmas party. He pleaded guilty to 11 criminal charges and was sentenced to 150 years in prison, with the sentencing judge calling Madoff's crimes "extraordinarily evil." Madoff died in prison at age 82 in April 2021.
