Bank of New York Mellon unit to pay $210 mn to settle Madoff fraud
14 November 2012
Ivy Asset Management Ltd, a subsidiary of Bank of New York Mellon Corp, has agreed to pay $210 million towards settlement of charges related to financial frauds committed by Bernard Madoff through his disgraceful Ponzi scheme.
Announcing the settlement, New York attorney general Eric Schneiderman said, ''Today's settlement brings accountability for one of the worst financial frauds in American history, and justice to defrauded investors. We have recovered over $210 million for the victims who were harmed as a result of the world's most notorious Ponzi scheme,''
''Ivy Asset Management violated its fundamental responsibility as an investment adviser by putting its own pecuniary interests ahead of the interests of its clients.''
''An investment adviser should apprise its clients of risks, but Ivy deliberately concealed negative facts it uncovered in its due diligence of Madoff in order to keep earning millions of dollars in fees. As a result, its clients suffered massive and avoidable losses," Schneiderman further stated.
The settlement concludes lawsuits against Ivy by the New York attorney general, the US department of labour, and private plaintiffs.
Between 1998 and 2008, Ivy was paid over $40 million to give advice and conduct due diligence for Madoff clients.