A federal appeals court ruled on Friday that building-trade worker benefit funds that invested in feeder funds to Bernard L. Madoff Investment Securities LLC will not be able to recover money from the Ponzi schemer's estate, Bloomberg News reported on Friday. The pension, health care and benefit funds for bricklayers, construction workers, electrical workers and others do not qualify as "customers" of Madoff under the Securities Investor Protection Act and are not eligible for recovery, according to the appeals court. The funds invested in Spectrum Select LP and Spectrum Select II LP, which in turn invested in hedge funds Rye Select Broad Market Fund LP and Rye Select Broad Market Prime Fund LP, according to the ruling. The Rye funds funneled capital to Madoff's firm, according to the ruling.
