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Post says Thema gives up SEC target Madoff's cash

2017-09-07 07:05 ET - In the News

The Financial Post reports in its Thursday edition that the Irish investment fund that helped open a floodgate of European cash for Bernard Madoff's bogus investments in the early 1990s agreed to pay $687-million to victims of the fraud to resolve the trustee's lawsuit (all figures U.S.). A Bloomberg dispatch to the Post says that the deal was struck with Dublin-based Thema International Fund PLC, part of a web of offshore entities linked to Austrian banker and Madoff pal Sonja Kohn. They gave Mr. Madoff vital access to cash as his Ponzi scheme began to lose steam. Details of the accord were filed on Wednesday in bankruptcy court. An approval hearing is scheduled for Oct. 25. The deal will boost total recoveries for victims to about $12.7-billion, or about 72 per cent of the principal losses. The trustee is still recovering large amounts of money for thousands of victims through lawsuits against funds and customers who profited from the scam. Two recent settlements with funds related to Thema put total recoveries since June at more than $1-billion. The details of Thema's case track the story of Mr. Madoff's expansion into Europe in the early 1990s, as sources of new cash in the U.S. threatened to dry up.

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