The U.S. Department of Labor announced on November 13 in a press release that it has reached a settlement that includes the payment of nearly $220 million to compensate employee benefit plans and other investors that suffered losses through investments in Bernie Madoff’s Ponzi scheme. The settlement is currently pending approval by the Federal Court in the Southern District of New York. It aims to resolve litigation between several companies and the Department of Labor, as well as New York’s Attorney General and several private lawsuits and class actions brought on behalf of plan members and other investors.
This settlement was reached with Ivy Asset Management LLC, J.P. Jeanneret Associates, Inc., Beacon Associates Management Corp., Andover Associates Management Corp., and their current and former owners and officers.
“My department is committed to ensuring that workers and retirees receive the benefits they’ve earned and deserve.” said U.S. Secretary of Labor Hilda Solis. “Today’s settlement brings accountability for one of the greatest financial frauds in American history” added New York Attorney General, Eric Schneiderman.
The settlement resulted from investigations conducted by the New York and Boston regional offices of the Employee Benefits Security Administration, which is an agency of the Department of Labor. Litigation was conducted by the Plan Benefits Security Division of the department’s Office of Solicitor in Washington, D.C.