The owners of the New York Mets baseball team has agreed to pay $162 million in order to settle a lawsuit by the trustee seeking money for the victims of Bernard Madoff’s fraud. The settlement was announced in U.S. District Court in New York last month just as the trial of the case was set to start. The Mets owners were accused by the trustee of turning a blind eye to signs of Madoff’s fraud while enriching themselves as long-term investors in his funds.
Fred Wilpon and Saul Katz, the primary owners of the Mets, will not have to pay any money immediately. The terms of the settlement call for payments over a five-year period. This settlement will provide an additional $162 million to pay back former Madoff customers. The case had been in mediation prior to the trial date. Interestingly, former New York State Gov. Mario Cuomo oversaw mediation of the dispute and helped get the case settled. Thus far the trustee has recovered about $9.1 billion in this litigation, but about $6.4 billion of that amount is unavailable due to appeals and reserves.
Madoff, who ran a multibillion-dollar Ponzi scheme over decades, is in prison after pleading guilty. He ran a Ponzi scheme in which many of his relatives and associates were lured to invest with the promise of steady high returns. Madoff paid old clients with the money from new investments and investigators found that the returns were fictitious. Wilpon and Katz were accused of ignoring warning signs that Madoff was running a fraud during their 25 years of investing with him. They claimed they did not know Madoff was running a Ponzi scheme. The settlement was approved by the court on April 13th.
Source: Insurance Journal
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.