Hedge fund agrees to return Madoff withdrawals

The pool of money available to compensate victims of Bernard Madoff's massive pyramid scam is getting bigger.
MAY 26, 2009
The pool of money available to compensate victims of Bernard Madoff's massive pyramid scam is getting bigger. A Swiss hedge fund affiliated with Spain's largest bank has agreed to return $235 million that it withdrew from its accounts with Madoff before the scheme collapsed. Geneva-based Optimal Investment Services will make the payment. It is controlled by Banco Santander, one of the biggest victims in Madoff's fraud. The settlement was announced Tuesday by the court-appointed trustee trying to unwind Madoff's pyramid, or Ponzi, scheme and return as much money as possible to its rightful owners. The payment will swell the amount available to Madoff victims to more than $1.2 billion. Madoff has pleaded guilty to swindling billions of dollars.

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