Settlement Could Add To Recovery In Madoff Case

Reuters tweets that a possible settlement with the estate of the late Jeffry Picower could substantially add to the recovery for the victim's of Bernie Madoff's Ponzi scheme to the tune of $2 billion. However, there are multiple lawsuits against Picower's estate that are causing a settlement to be delayed.

If the amount of the settlement is $2 billion, it would more than double the amount of money set aside for victims so far. So far, $1.5 billion has been recovered. Irving Picard, the trustee for the Madoff victims has said he would settle for the $2 billion figure instead of seeking the original $7.2 billion he originally wanted from Picard, his wife and charities associated with him. Picard has claimed that Picower, who was found dead in his pool last October, was aware of the fraud and said he was the biggest beneficiary of Madoff's crime. Unfortunately, there have been a few lawsuits in Florida against Picower holding up the settlement.

William Zabel, a lawyer representing Picower's estate, told the Wall Street Journal he would not settle with Picard without a cease on other litigation against Picower's estate. "We are not about to settle for more than $2 billion and then be sued by other people for billions," Zabel said.

Madoff is currently serving a 150-year prison sentence after pleading guilty in March 2009 to history's biggest Ponzi scheme, allegedly bilking investors out of $65 billion.

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