The terms of the settlement reportedly stipulate that $2.2 billion goes to a federal victims fund to resolve a lawsuit filed last year, and $5 billion will be placed in care with the Trustee.
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The settlement constituted the largest single forfeiture in American judicial history, Mr. Bharara said.
Mrs. Picower said in her statement that she was confident that her husband had not been involved in the ponzi scheme, calling it 'deplorable', and that returning the gains was the right thing to do.
Picard has said that cash losses from the Madoff scheme total nearly $20 billion. The settlement from the Picower estate will go some way to helping Madoff's victims recover their losses. According to a statement by Picard, all of the $7.2 billion will be distributed to Madoff customers with valid claims. Picard said he expected to make a distribution to victims by the end of the first quarter of 2011.