Judge OKs Tremont Madoff Settlement

Sep 23 2011 | 1:59pm ET

A federal judge has given his assent to a $1 billion settlement between the Bernard Madoff receiver and one of the con man's biggest feeder fund managers.

U.S. Bankruptcy Judge Burton Lifland approved the deal struck by Irving Picard and Tremont Ground Holdings, calling it "fair and reasonable." Picard had originally sought $2.1 billion from Tremont, which is owned by MassMutual.

The settlement leaves intact some $3 billion in claims that Tremont has against the Madoff estate, giving it "the potential to recover a substantial portion of their losses incurred as a result of Madoff's fraud."

Picard's deal with Tremont is among his largest. But it isn't likely to be his last, according to one report.

The owners of the New York Mets, whom Picard has sued for more than $1 billion, are almost certain to settle the case before it goes to trial in March, a source told the New York Daily News. A deal is likely to come on the eve of that court date, the source added.

"It would be too damaging for both parties not to settle," the source told the Daily News. "You'll have e-mails and documents that are damaging to the Mets, and the judge will make Picard look bad."


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note