Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Madoff trustee reaches $277 million accord with money manager's family

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/28/2016 | 01:02pm EDT
File photo of Bernard Madoff exiting the Manhattan federal court house in New York

(Reuters) - The court-appointed trustee liquidating Bernard Madoff's firm said on Friday he has reached a settlement with the family of late Beverly Hills money manager Stanley Chais that will provide more than $277 million to victims of Madoff's Ponzi scheme.

Irving Picard, the trustee, said victims will receive at least $232 million of cash, and the rights to $30.7 million of assets that are expected to be sold.

A separate $15 million fund will pay claims by California investors, resolving litigation by that state's Attorney General Kamala Harris, and which had been brought in 2009 by her predecessor, California Governor Jerry Brown.

Friday's settlement requires approval by U.S. Bankruptcy Judge Stuart Bernstein in Manhattan, who oversees the liquidation of Bernard L. Madoff Investment Securities LLC. A hearing is scheduled for Nov. 22.

The cash payout would boost to $11.46 billion the sum that Picard has recovered for former Madoff customers, or 65 percent of their estimated $17.5 billion loss. Picard has said half of the 2,597 accounts with valid claims have been fully paid off.

Madoff, 78, is serving a 150-year prison term after pleading guilty to running a decades-long fraud uncovered in December 2008.

Chais, who died in September 2010 at the age of 84, once handled investments for elite Hollywood clients like Oscar-winning director Steven Spielberg, and had been a close friend of Madoff since the 1960s.

Picard had sought to recoup $1.32 billion of "fictitious profits" that he claimed the Chais defendants, including Chais' widow Pamela, withdrew from Madoff's firm.

The U.S. Securities and Exchange Commission in June 2009 filed a related civil lawsuit against Chais, claiming he ignored red flags that Madoff's seemingly steady returns were bogus.

In a court filing, Picard's lawyers said the settlement covered all of Stanley Chais' estate and substantially all of his widow's assets, and represented "a good faith, complete and total compromise."

Chais had maintained that he was also a Madoff victim and had lost nearly all of his own money.

Lawyers for the Chais defendants did not immediately respond to requests for comment.

Through Sept. 30, more than $1.42 billion has been spent on recovery efforts, including $824.6 million for legal fees for Picard's law firm Baker & Hostetler and $370.2 million for consultant fees, a Thursday court filing shows.

A $4 billion fund overseen by former SEC Chairman Richard Breeden will also compensate Madoff victims.

The cases are Picard v Chais et al, U.S. Bankruptcy Court, Southern District of New York, No. 09-ap-01172; and In re: Bernard L. Madoff Investment Securities LLC in the same court, No. 08-01789.

(Reporting by Jonathan Stempel in New York; Editing by Steve Orlofsky and Cynthia Osterman)

By Jonathan Stempel

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
12:04aBig companies commit to slash emissions ahead of U.N. climate summit
RE
09/21U.S.-Japan trade talks will bring peace of mind to farmers, automakers - Motegi
RE
09/21SoftBank mulls bringing 40 companies to Brazil
RE
09/21PRIME MINISTER OF HUNGARY : A Christian Democratic state has been built in Hungary
PU
09/21Labour government would abolish 'non-domiciled' status in first budget
RE
09/21ADB ASIAN DEVELOPMENT BANK : Vice-President Reaffirms Commitment to Uzbekistan's Development
PU
09/21Tanzania sees 2019/20 cashew nut output up 33 percent - minister
RE
09/21MIN ZHANG : China traders cut back Iran iron ore purchases ahead of tariff hike
RE
09/21PRESIDENT OF RUSSIA : Greetings to President of Armenia Armen Sarkissian and Prime Minister Nikol Pashinyan on Armenia's national holiday – Independence Day
PU
09/21Hopes for trade breakthrough fade as China cancels U.S. farm visits
RE
Latest news "Economy & Forex"