Victims of Bernard Madoff's Ponzi scheme are set to receive proceeds from a $210m settlement between a Bank of New York Mellon advisory firm subsidiary and US authorities, the New York attorney-general has said.
According to the Financial Times, US officials said on Tuesday that the settlement, together with money recovered by Irving Picard, the trustee handling the liquidation of the Madoff estate, should compensate investors "for all or nearly all" of their original investment.
Madoff was sentenced to 125 years in prison in 2009 for running the world's largest Ponzi scheme, which defrauded customers of about $20bn.
Eric Schneiderman, New York attorney-general, said that Ivy Asset Management, a BNY Mellon subsidiary which advised clients to invest with Madoff, had agreed to settle allegations it breached its fiduciary duty.
"An investment adviser should apprise its clients of risks, but Ivy deliberately concealed negative facts it uncovered in its due diligence of Madoff in order to keep earning millions of dollars in fees," he said.
"As a result, its clients suffered massive and avoidable losses."
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till