NY judge rejects $63M HSBC deal in Madoff case

AP News
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Posted: Sep 07, 2011 8:12 PM
NY judge rejects $63M HSBC deal in Madoff case

A New York judge has rejected a settlement calling for banking company HSBC Holdings PLC to pay $62.5 million to resolve a lawsuit brought by a hedge fund that lost money in Bernard Madoff's (MAY'-dawfz) fraud.

Federal Judge Richard Berman in Manhattan rejected the deal Wednesday, saying there were inadequate disclosures about legal fees and administrative costs.

The bank had planned to pay the money to investors in the Ireland-based fund Thema International Fund PLC. Thema funneled money to Madoff's company before he disclosed his fraud in December 2008.

The lawsuit said the bank provides administrative services to the fund and should've known about the fraud.

Lawyers leaving court declined to comment.

Madoff is serving a 150-year prison sentence in Butner, N.C., for cheating thousands of investors out of billions of dollars.