Trustee: Mets tried to buy fraud insurance

  NEW YORK -- A court-appointed trustee says the owners of the New York Mets reaped profits from Bernard Madoff's financial Ponzi scheme even as they shopped for insurance to protect themselves in case the scam collapsed.

Trustee Irving Picard says partners in Sterling Equities contacted a broker to ask about insuring their account with Madoff in February 2001. In one handwritten note, court records say partner Arthur Friedman wrote the insurance should cover "fraud or fidelity" with the word "Ponzi" in parentheses. Picard filed the court documents Thursday.

Picard claims Sterling partners knew Madoff was stealing from new investors to pay off older investors. He wants them to repay $1 billion to Madoff's victims.

Sterling denies it knew about Madoff's wrongdoing. In a written statement, the group said there were no "red flags and they received no warnings."

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(Copyright ©2011 by The Associated Press. All Rights Reserved.)
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Madoff case trustee announces fund settlement

Bernard Madoff, chairman of Madoff Investment Securities, returns to his Manhattan apartment after making a court appearance Wednesday, Dec. 17, 2008 in New York. (AP Photo/Jason DeCrow)

  NEW YORK -- A New York trustee recovering money for investors in Wall Street swindler Bernard Madoff's fraud says the liquidators of a fund that put more than $7 billion in Madoff's hands have agreed to a deal that'll funnel 3 percent more money to burned investors with valid claims.

Trustee Irving Picard said Monday the deal was reached with liquidators of the now-defunct Fairfield Sentry Limited funds. The funds were managed by entities related to Madoff's largest feeder-fund operator.

Picard says the deal reduces Fairfield's claim against a fund paying claims of injured investors from $1.2 billion to $230 million. He says Fairfield also agreed to pay $70 million to be distributed to Madoff investors. Picard has agreed not to pursue a $3.8 billion judgment against Fairfield.

Fairfield liquidators haven't returned a call seeking comment. (Copyright ©2011 by The Associated Press. All Rights Reserved.) Get more Business »

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