SIPC Comments on Madoff Trustee's Settlement in Katz Case

Decision a Major Step Forward in Interest of Madoff Victims, Defendants Will Pay $162 Million to Trustee Over Five Years

WASHINGTON, D.C. – March 19, 2012 – The Securities Investor Protection Corporation today applauded the settlement reached today by Irving H. Picard, the Trustee for the SIPA liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”) with partners of Sterling Equities and related persons and entities.

The Sterling parties – including Fred Wilpon, chairman and CEO of the New York Mets, and Saul Katz, president of the New York Mets -- have agreed to pay $162 million over five years to the BLMIS Customer Fund.  This is equal to 100 percent of the fictitious profits that were withdrawn by the Sterling parties during the six-year period prior to the BLMIS liquidation proceeding. 

Stephen P. Harbeck, president of the Securities Investor Protection Corporation, said: “This settlement is in the best interest of the Madoff victims, who will benefit from the additional monies being added to the customer fund for distribution.  The decision also provides guidance towards other similar settlements in cases still pending with the Trustee.”    

The settlement was announced today in the United States District Court for the Southern District of New York.  Additional information and updates can be found on  the Trustee’s website at http://www.madofftrustee.com.