A fund that invested exclusively in Bernard Madoff’s massive Ponzi scheme has struck a deal that frees up $93 million to pay back victims of the fraud. Irving Picard, the official tasked with liquidating Mr. Madoff’s defunct firm, said in a Monday court filing that Defender Limited and related entities have agreed to return $93 million they received from investing with Mr. Madoff. Under the terms of the deal, the amount will be withheld from a $522.8 million recovery that Defender is in line to receive for money it lost from the fraud. The deal is one of several Mr. Picard has struck with so-called feeder funds, which pooled investors’ cash and then funneled the money to Mr. Madoff. Phony returns were later paid out to the feeder funds, which then distributed the money among their individual investors. More in the Wall Street Journal here.
