The Trustee Who's Clawing Back Money For Madoff's Victims Is Trying To Block Money Manager's Deal With New York

madoff bernie bernard ponzi fraud crookBernie Madoff

The trustee seeking money for victims of Bernard Madoff’s fraud is trying to block a $410 million settlement resolving New York’s claims against a money manager accused of secretly steering client money to Madoff.Irving Picard, the trustee, said the state’s settlement with financier Ezra Merkin interferes with his right to recover money for former Madoff customers.

Picard also said the accord, announced June 24 by New York Attorney General Eric Schneiderman, would reduce the amount of assets available for him to pursue.

Picard filed his request for an injunction in U.S. Bankruptcy Court in Manhattan, which oversees the liquidation of Bernard L. Madoff Investment Securities LLC.

A spokesman for Schneiderman did not immediately respond to requests for comment.

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