Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by Law.com, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!

X

Madoff trustee tries to block investor settlement

Irving Picard said allowing the $80 million settlement will thwart his efforts

Irving Picard, the trustee working to recover funds for victims of Bernard Madoff, is asking a judge to block a settlement reached with the founders of Fairfield Greenwich Group. Picard says the investors funneled billions of dollars to Madoff.

Picard said in court documents that if the settlement proceeds, it will “thwart the Trustee’s efforts to recover funds for equitable distribution to the victims of the Ponzi scheme.” The settlement with Fairfield, reached last month, represents a “substantial portion” of what the Fairfield defendants might recover, court documents said.

“We’re confident the trustee’s attempts to block the settlement is meritless and will not succeed,” David A. Barrett, a partner at Boies, Schiller & Flexner, told the Wall Street Journal.

In December 2008, Madoff was arrested for securities fraud after he masterminded one of the largest and longest-running Ponzi schemes in U.S. history. In the end, he cheated his clients out of between $18 billion and $20 billion, according to Picard. Madoff pleaded guilty to the charges in 2009 and is currently serving a 150-year sentence.

A hearing for final approval of this settlement is set for March 2013, and a hearing on Picard’s motion to block it has been set for Dec. 13.

Read more InsideCounsel stories about the Madoff scandal:

Former Madoff employee pleads guilty to decades of fraud

Madoff victims receive largest payout yet

Madoff trustee can pay victims $2.4 billion

Madoff trustee asks for $2.4 billion for victims

New York Mets settle with Madoff victims for $162 million

JPMorgan Chase faces $19 billion lawsuit from Madoff victims

 

Editor

Cathleen Flahardy

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.