14 Nov 2012

Payment made by pro-Madoff fund

1:39 pm on 14 November 2012

An investment fund in New York has agreed to pay $US210 million to settle claims by investors to whom it recommended the fraudster Bernie Madoff.

Plaintiffs said they lost more than $US236 million after Ivy Asset Management, part of Bank of New York Mellon, advised them to invest in Madoff's Ponzi scheme.

As a feeder fund, Ivy collected $US40 million in commissions for this advice.

Madoff is serving a prison sentence of 150 years after he was convicted in 2009 of operating the biggest fraud in history.

Investors lost more than $US17 billion, of which 58% has been recovered.