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Madoff trustee’s “bluster” insufficient to block feeder fund settlement

Judge Jed Rakoff rejected Irving Picard’s bid to block a $410 million deal between the fund and the N.Y. Attorney General

U.S. District Judge Jed Rakoff has told Irving Picard, the trustee responsible for collecting money for Bernard Madoff’s victims, to mind his own beeswax.

Just as he threatened, Picard was attempting to block a settlement between N.Y. Attorney General Eric Schneiderman and J. Ezra Merkin, a hedge fund manager who fed client funds to Madoff. But Rakoff rejected this bid in a 26-page order on Monday, saying, “the trustee…having for more than three years issued empty threats to seek a halt to the attorney general’s suit, has lost his right to complain.”

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