Court Won’t Unravel Madoff Settlements

MANHATTAN (CN) – Victims of Bernard Madoff’s massive Ponzi scheme can collect on a $410 million settlement despite obstruction from Madoff’s bankruptcy trustee, the 2nd Circuit ruled. Irving Picard, as trustee for the liquidation of Bernard L. Madoff Investment Securities and Madoff’s bankruptcy estate, launched “adversary proceedings” to block the settlement of three lawsuits on behalf of investors in “feeder funds” that funneled cash to perpetuate the scheme. Picard claimed that the settlements on those three cases would “hinder” his ability to recoup fraudulent transfers. Such concerns failed Friday, however, to sway the 2nd Circuit on Friday. More in Courthouse News here.