Thursday, 27 October 2016
Last updated 53 min ago
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.