Insurers Balk At Madoff Trustee’s $1B Tremont Fund Deal

Law360, New York (September 7, 2011, 5:27 PM EDT) -- Seven insurance companies on Tuesday blasted the $1 billion settlement reached between the trustee for Bernard Madoff's securities firm and one of its largest feeder funds, saying the deal does not adequately protect their claims to liquidated Ponzi scheme assets.

As partners in a Tremont Group Holdings Inc. fund that invested more than $4 billion in Madoff, the insurers, which include Nationwide Insurance Co. and New York Life Insurance Co., say they stand to lose millions if a judge later decides that trustee Irving Picard erred in denying...
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