Friday, 26 August 2016
Last updated 28 min ago
Aug 27 2013 | 10:37am ET
Another Bernard Madoff feeder fund has settled with the court-appointed trustee seeking to recover money for the arch-fraudster’s victims.
Maxam Capital Management’s Absolute Return Fund will pay $97.8 million into Irving Picard’s restitution fund, according to a court filing yesterday. The deal will allow it to file a claim for nearly $276.7 million from the Madoff estate.
A federal judge must still approve the deal, which resolves a three-year-old lawsuit and would add to “eventual distribution to defrauded Madoff customers with allowed claims.”
Picard had accused Maxam of being in a “unique position to obtain information concerning” Madoff’s operations—Maxam founder Sandra Manzke is a former CEO of Tremont Capital Management, which lost $3.1 billion in the fraud and settled with Picard for more than $1 billion—citing her long-time ties to Madoff.
Maxam had more than $300 million invested with Madoff at the time of his arrest, in 2008.