Madoff Trustee in $1B Settlement with Tremont

The trustee seeking money for victims of Bernard Madoff's fraud announced on Thursday a more than $1 billion settlement with Tremont Group Holdings Inc, which he had accused of missing warning signs of the Ponzi scheme.

Irving Picard, the trustee, said the accord covers more than one dozen U.S. and foreign investment funds, and also includes Massachusetts Mutual Life Insurance Co, of which Tremont is a part.

Picard said more than $1 billion in cash will be placed in escrow, and ultimately distributed to former customers of Bernard L. Madoff Investment Securities LLC.