NY Madoff case trustee announces fund settlement

AP News
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Posted: May 09, 2011 6:03 PM
NY Madoff case trustee announces fund settlement

A New York trustee recovering money for investors in Wall Street swindler Bernard Madoff's (MAY'-dawfs) fraud says the liquidators of a fund that put more than $7 billion in Madoff's hands have agreed to a deal that'll funnel 3 percent more money to burned investors with valid claims.

Trustee Irving Picard said Monday the deal was reached with liquidators of the now-defunct Fairfield Sentry Limited funds. The funds were managed by entities related to Madoff's largest feeder-fund operator.

Picard says the deal reduces Fairfield's claim against a fund paying claims of injured investors from $1.2 billion to $230 million. He says Fairfield also agreed to pay $70 million to be distributed to Madoff investors. Picard has agreed not to pursue a $3.8 billion judgment against Fairfield.

Fairfield liquidators haven't returned a call seeking comment.