The New York Times: Lawyers Reach Deal to Recover $7 Billion for Madoff Victims (445 hits)
Fri, December 17, 2010 -- 10:42 AM ET
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Federal prosecutors and the trustee liquidating the estate of Bernard L. Madoff, the convicted swindler, have reached a civil settlement that will recover at least $7 billion to compensate victims of Mr. Madoff's global Ponzi scheme, according to people briefed on the negotiations. An announcement is expected at noon Eastern time. Prosecutors have said privately that the settlement is the largest civil forfeiture in American history.
The settlement will conclude the trustee's case against the estate of Jeffry M. Picower, a Palm Beach philanthropist and longtime Madoff investor who died in October 2009. The complaint filed against the estate indicated that Mr. Picower, who became wealthy investing in medical-technology companies, had profited hugely from Mr. Madoff's scheme, drawing out billions more than he paid in.
The settlement will greatly expand the funds available to repay victims of the fraud; before Friday, the trustee had collected $2.3 billion from other sources.
