Madoff-Linked Insurance Policyholders Win Settlement

Sep 3 2009 | 12:46pm ET

A pair of insurance companies, one affiliated with Ponzi scheme-scarred Tremont Group Holdings, have settled a policyholder lawsuit over losses in the Bernard Madoff scandal.

Argus Group Holdings and Tremont International Insurance, which both invested in Tremont Madoff feeder funds, have agreed to offer low-interest loans to policyholders whose policies may lapse; the 100 or so policies used their Madoff investment returns to pay premiums. The settlement, which still requires the approval of U.S. District Judge Thomas Griesa in Manhattan, includes no cash payments.

In return for the settlement, Argus and Tremont International will assign their legal claims in the Madoff case to a litigation trust.

“The settling parties intend to fully, finally and forever resolve, discharge, dismiss and settle the claims against the Argus defendants,” the settlement proposal said.


In Depth

MiFID2 For U.S. Firms: Key Questions Answered

Feb 27 2017 | 4:54pm ET

The January 2018 deadline for implementation of the EU’s mammoth MiFID2 regulations...

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

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of