Fairfield Greenwich Group, the biggest operator of "feeder funds" that channeled money into Bernard Madoff's Ponzi scheme, agreed to a settlement that may pay defrauded investors as much as $80.3 million, Bloomberg News reported yesterday. The deal, to be funded by Fairfield Greenwich founder Walter Noel and other individuals associated with the firm, resolves claims by a class of investors who lost money to Madoff's fraud, according to court documents filed yesterday. Fairfield Greenwich placed about $7 billion with Madoff’s firm, Bernard L. Madoff Investment Securities LLC. The settlement, which needs a judge’s approval before taking effect, provides $50.3 million to the class, which will get an additional $30 million if that money is not used to resolve other legal claims. A provision in the agreement allows Fairfield Greenwich to cancel the settlement if too many investors opt out of the deal to pursue individual claims.
