A New York-based investment fund agreed to pay a $210 million settlement to investors who suffered losses from Bernard Madoff’s massive Ponzi scheme.
Ivy Asset Management, a subsidiary of Bank of New York Mellon that advised people to invest with Madoff, will settle the lawsuits on Tuesday New York Attorney General Eric Schneiderman said in a statement.
The firm will provide the $210 million payment to settle suits filed by the U.S. Department of Labor, the New York attorney general’s office, and private plaintiffs. Around $9 million extra will be issued to other defendants, according to the statement.
“Ivy Asset Management violated its fundamental responsibility as an investment adviser by putting its own pecuniary interests ahead of the interests of its clients,” Schneiderman said.
Schneiderman said Ivy “deliberately concealed” the facts that it found out about Madoff’s scheme in order to keep earning millions on fees.
Officials say that Ivy was paid at least $40 million between 1998 and 2008 for giving advice to clients of Madoff.
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