MassMutual Unit Settles For $1B In Madoff Case
A unit of Springfield-based Massachusetts Mutual Life Insurance Co. is paying a more than $1 billion settlement to investors swindled in the Bernard Madoff Ponzi scheme.
Irving Picard is the court trustee who’s been recovering money for Madoff victims. He says Thursday’s billion-dollar cash settlement was reached with more than a dozen so-called feeder funds associated with Tremont Group Holdings Inc., a multibillion-dollar money management company based in New York and owned by MassMutual.
Tremont spokesman Montieth Illingworth says the company hopes the deal can benefit all parties.
"Tremont is pleased to have negotiated an agreement with the trustee that gives investors in our funds the potential to recover a substantial portion of their losses incurred as a result of Madoff's fraud," Illingworth said.
The settlement is the latest in a series of deals reached with hedge funds that channeled investor money to Madoff. Picard says now nearly half of the around $17 billion in principal lost by Madoff has been recovered for victims.
This program aired on July 28, 2011. The audio for this program is not available.