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

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...