On Monday, a NY federal judge approved a plan to allocate $623 million to investors who lost money through Bernard Madoff's Ponzi scheme. Judge Thomas Griesa rejected a handful of objections to the complex plan of allocation during a lengthy hearing in Manhattan. The plaintiffs in the case invested in various funds managed by Tremont Group Holdings Inc., which in turn funneled money to Madoff (otherwise known as a "feeder fund").
Tremont reached a $1 billion settlement with the Madoff bankruptcy trustee 2011. The agreement established two settlement funds to repay aggrieved investors. One comprised of all of the assets remaining in one group of funds overseen by Tremont. This ruling clears the way for the assets to be distributed.
Bernie Madoff is serving a 150-year prison sentence for orchestrating the massive Ponzi scheme, which was exposed in December 2008. Fourteen other individuals have been convicted or pled guilty in relation to the massive fraud.
Tremont, a division of Mass Mutual Life Insurance, was the second-largest Madoff feeder fund. The $1 billion settlement stemmed from allegations by trustee Irving Picard that the company continued to invest money into Bernard L. Madoff Investment Securities LLC despite obvious red flags. For its part, Tremont has argued that it followed all appropriate due diligence and was also duped by Madoff's Ponzi scheme.
The experienced securities litigation attorneys at Colling Gilbert Wright & Carter have litigated and resolved hundreds of FINRA arbitration claims over questionable Wall Street practices. If you believe you lost money due to misrepresentations or fraud on the part of your FINRA registered broker dealer, please contact us for a free case evaluation.