Madoff Customers Recovery Tops 75 Percent With Merkin Settlement


NEW YORK – The court-appointed trustee liquidating Bernard Madoff’s firm on Wednesday announced a $280 million settlement with one of the swindler’s earliest investors, enabling customers to recoup more than 75 percent of the principal they lost.

The accord with hedge fund manager Ezra Merkin also resolved claims against Ascot Partners LP, a “feeder fund” he ran that sent customers’ money to Madoff, often without their knowledge, as well as his management company Gabriel Capital Corp.

Upon receiving court approval, the accord would boost recoveries for former customers of Bernard L. Madoff Investment Securities (BLMIS) LLC to $13.26 billion.

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