Madoff Trustee Can't Stop Feeder Fund Settlement

Mar 21 2013 | 12:23pm ET

The court-appointed trustee in the Bernard Madoff Ponzi scheme can't stop an $80 million deal between a feeder fund and its investors.

Irving Picard has no jurisdiction over investors in Fairfield Greenwich Group, the Madoff feeder fund, U.S. District Judge Victor Marrero ruled yesterday. Claims by feeder fund investors are "separate and distinct" from those made by Madoff's direct investors.

Fairfield Greenwich, one of the largest Madoff feeder funds, struck the $80 million deal with a group of its investors. Picard had warned that it could interfere with his efforts to recover assets for Madoff's other victims.

Picard two years ago struck a deal of his own with Fairfield Greenwich, in which the firm's liquidators agreed to give up $1 billion in claims against the Madoff estate.

Fairfield's settlement with its investors is set for final court approval tomorrow.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...