Madoff Trustee In Agreement With Fairfield Liquidators

by San Antonio Attorney

Irving Picard, trustee, was able to strike a deal to take over victims’ legal claims against the Fairfield Greenwich Group’s hedge fund founders, the biggest fund feeder to Bernard Madoff’s Ponzi Scheme.

According to Picard, he will no longer go after the estimated $212 million withdrawn by Greenwich Sentry LP and Greenwich Sentry Partners LP during the past six years of Madoff’s scam operation.

In return, Picard will pursue their legal claims against the owners and managers of Fairfield.

Picard said that Fairfield has received over $1 billion as fees from the $7.2 billion it fed to Madoff’s firm. A lot of the firm’s clients did not know what they were investing in.

The Greenwich Sentry funds reduced their claims of $143 million to $37 million against Madoff bankruptcy estate as part of the arrangement with the trustee.

During Picard’s court filing he said that the recent agreement will increase the probability of returning funds to the Madoff firm investors.

A Fairfield Greenwich spokesman refused to give a comment. July last year, Picard has filed a lawsuit against 46 defendants including Fairfield Greenwich, Walter Noel, Jeffrey Tucker, and Andres to retrieve $3.6 billion.

The settlement reached last Wednesday is the same with settlements made with liquidators for Fairfield Sentry and two other offshore Fairfield Greenwich Funds on May 9.

The trustee is in charge of the claims of liquidators, and the $1.2 billion claims against Madoff estate was cut to $230 million. In exchange, Picard has agreed not to pursue a $3.8 billion claim against the offshore funds.

According to Picard, he is seeking to prevent other parties from claiming on behalf of Madoff victims to avoid conflict with his own efforts.

Claims against Fairfield Greenwich funds, which are $4 billion collectively, should have minor effect on the firm investors since there is no money in the said funds.

The agreement will be considered for approval by U.S. Bankruptcy Judge Burton Lifland in Manhattan on June 21.

Bernard Madoff, 71 years old, is serving 150-year sentence in North Carolina.

News Article Filed in San Antonio Bankruptcy

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