Baker & Hostetler partner Irving Picard, the court-appointed trustee in the Bernard L. Madoff Investment Securities Chapter 11, has announced that he has reached an agreement with a hedge fund that funneled investments to the massive Ponzi scheme. The agreement is with the liquidators for Fairfield Sentry and related funds, the largest of the so-called feeder funds. The settlement requires Fairfield to reduce its $1.2 billion customer claim in the Chapter 11 to $230 million, and it includes an agreement that the Fairfield liquidators will cooperate with Mr. Picard to pursue the fund owners.
“We are now working together with the liquidators, not at cross-purposes, to pursue these assets,” Picard counsel David Sheehan of Baker & Hostetler said in a statement. “The trustee is confident that combining forces with the joint liquidators enables the potential recovery of billions in additional dollars for the ultimate benefit of the BLMIS Customer Fund.”
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