$500 Million Returned To Bernie Madoff Victims

WALL STREET, NY — More than $500 million was distributed to victims of Bernie Madoff, federal officials announced on Thursday.

This is the second in a series of payments made to the thousands of people who were scammed by the financier in the largest fraud in history. The Madoff Victim Fund, created by the U.S. Department of Justice, will distribute the $504.2 million to 21,000 victims worldwide.

This is the second in a series of payments made to Madoff victims. In total, nearly $1.3 billion will be returned through the Madoff Victim Fund, the Justice Department said. Another $5 billion will be returned to victims through a customer fund for investors in Madoff's investment securities company.

Madoff, who was sentenced to serve 150 years in prison in 2009, stole billions of dollars from thousands of his clients through an elaborate Ponzi scheme. Madoff used the stolen money to fund his own lavish lifestyle and on his family and friends.

"While today’s distribution of funds is indeed historical in scope, we understand no amount of money could ever restore the damage done by Madoff as a result of his selfish behavior and unforgivable financial crimes," FBI Assistant Director William Sweeney, Jr. said in a statement. "To all of his many victims and their families, we realize this gesture may not provide the consolation necessary to remove the pain and suffering you have been brought to bear, but we are hopeful it provides some sense of relief, and we remain committed to achieve justice for all victims of inexcusable financial crimes."

Madoff's fraud destroyed the lives of thousands of investors, many of whom lost their life savings.

Image credit: Hiroko Masuike/Getty Images. Image caption: Bernard Madoff (C) walks out from Federal Court after a bail hearing in Manhattan January 5, 2009 in New York City. Madoff is accused of running a $50 billion Ponzi scheme through his investment company. Madoff is free on bail and hasn't formally responded to the charges or entered a plea.