Everyone burned by Bernard Madoff’s Ponzi scheme wants their money, and they want it now. But a few investors who lost big thanks to Madoff may have to wait a little longer for their payday.
Former investors with J. Ezra Merkin, a money manager, may have to wait as long as the end of the year to receive distribution from the $415 million settlement Merkin reached in the Madoff case with New York Attorney General Eric Schneiderman.
Schneiderman agreed to the delay in payment to give Irving Picard, the court-appointed trustee for Madoff’s victims, time to appeal a court’s decision in April that rejected his attempt to block the settlement. “The defrauded customers of Bernard L. Madoff Investment Securities LLC deserve the SIPA Trustee’s full representation in this matter, to ensure equitable protection for all,” Amanda Remus, Picard’s spokeswoman, told the Wall Street Journal Law Blog.
The settlement between Schneiderman and Merkin came after several years of litigation. Picard has contested other similar settlements with these so-called feeder funds.
Read more InsideCounsel stories about the Madoff drama.