Santander Unit Settles Madoff Claims for $235 Million

Banco Santander's investment arm Optimal agreed Tuesday to pay more than $235 millon to settle claims filed by the trustee responsible for the liquidation of Bernie Madoff's investment empire, according to a press release.

Bernie Madoff
Bernie Madoff

The settlement equals 85% of what trustee Irving H. Picard would have claimed against the fund, and if approved, he will have collected about $1.225 billion for Madoff's fraud victims.

"I am very pleased that we reached such a favorable settlement with Optimal and that Optimal will pay more than $235 million to resolve the claims against it," Picard said in the release. "We hope that other entities against which we have claims will likewise come forward to settle those claims for the benefit of all of Madoff's victims."

Optimal had invested about $3 million with Madoff before the Ponzi scheme, for which Madoff pleaded guilty in March, unraveled.

Picard filed a motion with the Bankruptcy Court Tuesday seeking approval for the settlement. It will hold a hearing on June 16.