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Bank Subsidiary Settles Over Madoff Steering

Ivy Asset Management to pay $210 million

Adam Chandler
November 13, 2012

Bernie Madoff has been sitting in federal prison in Butler, North Carolina since 2009 after pleading guilty to running a Ponzi scheme that cost investors over $17 billion. Years later, the legal mess surrounding the Madoff imbroglio continues.

Today, Ivy Asset Management, a Bank of New York Melon unit, settled with authorities to the tune of $210 million for reportedly steering clients to invest with Bernie Madoff despite internal documents that expressed reservations about Madoff.

The settlement of suits filed by the attorney general, the Labor Department and private plaintiffs also provides for about $9 million in payments by other defendants. Combined with anticipated future payments from Madoff bankruptcy proceedings, [Attorney General] Schneiderman said it is expected to return nearly all of the original investments to those who were defrauded, including union pension funds from upstate New York.

So there’s that.

Adam Chandler was previously a staff writer at Tablet. His work has appeared in the New York Times, the Wall Street Journal, the Atlantic, Slate, Esquire, New York, and elsewhere. He tweets @allmychandler.