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

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of