A U.S. judge said he will approve an $80.3 million settlement between Fairfield Greenwich Group, the biggest operator of “feeder funds” that channeled money into Bernard Madoff’s Ponzi scheme, and investors who lost money in the fraud.
U.S. District Judge Victor Marrero in Manhattan said today he’ll grant final approval of the deal, which is to be funded by Fairfield Greenwich founder Walter Noel and other individuals associated with the firm. Fairfield Greenwich placed about $7 billion with Madoff’s firm, Bernard L. Madoff Investment Securities LLC.
The settlement provides $50.3 million to the investors, who will get an additional $30 million if that money isn’t used to resolve other legal claims.
In 2011 a bankruptcy judge approved a $212 million settlement between Irving Picard, the trustee liquidating Madoff’s defunct firm, and Greenwich Sentry LP and Greenwich Sentry Partners LP, two bankrupt funds related to Fairfield Greenwich. Marrero on March 20 ruled against an attempt by Picard to prevent the settlement with the Fairfield investors from going forward.
“We and our co-lead counsel are gratified by Judge Marrero’s statement that he intends to grant final approval of the settlement, which will begin to compensate investors in the Fairfield funds for their substantial losses,” David Barrett, a lawyer for the investors, said in a statement today.
The investors continue to pursue claims in the case against Citco Group Ltd. and PricewaterhouseCoopers LLP, according to Barrett.
The case is Anwar v. Fairfield Greenwich Group Ltd., 09- cv-00118, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Bob Van Voris in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Hytha at email@example.com