Madoff Feeder Fund Agrees to Settlement with Mass. Investors
Fairfield Greenwich Advisors, a "feeder fund" accused of funneling investor money into Bernie Madoff's Ponzi scheme, has agreed to a $8 million settlement with the commonwealth of Massachusetts.
William Galvin, secretary of the commonwealth, announced the deal moments ago and said he hopes it can serve as a template for other settlements, as states help fleeced Madoff investors get their money back.
Eight million is not much, but it's a start. And Fairfield agreed to pay a $500,000 fine though, as is typical in these cases, did not admit wrongdoing. Fairfield had offered $6 million, which Massachusetts turned down.
Madoff is serving 150 years in a North Carolina prison for admitting to running a fraudulent investment scheme that the government says totaled some $65 billion in investor money and inflated earnings.
Irving Picard, the liquidator for Madoff's former business, recently said he may seek to "claw back" money from charity investors that took out more money than they invested with Madoff.
Picard has so far recovered more than $1 billion. He is suing Madoff’s big investors and beneficiaries, which include offshore entities.
-- Frank Ahrens
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September 8, 2009; 2:41 PM ET
Categories: The Ticker | Tags: Bernie Madoff
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Posted by: Dermitt | September 9, 2009 9:23 AM | Report abuse
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