Compromise on insurer payments draws objections

NEW YORK — The trustee finding money for victims of Bernard Madoff’s epic fraud asked the US Supreme Court on Tuesday to overturn a court ruling that he said may prevent the recovery of nearly $4 billion, may reward those who unwittingly profited from the Ponzi scheme at the expense of those who did not, and may have far-reaching effects for future fraud victims. Lawyers for the trustee, Irving Picard, said the December ruling by the Second US Circuit Court of Appeals in Manhattan threatens a century’s worth of law that steered how courts respond to the legal aftermath of Ponzi schemes. ‘‘Denying review would only perpetuate confusion and uncertainty at a time when investors can afford neither,’’ the legal papers said, adding that the 2008 financial crisis revealed investors are victims of a remarkable number of financial frauds. More on Boston.com here.