Historic Settlement of approximately $50 million for Fairfield Funds

Caymanian Compass – Fairfield Sentry Limited and Fairfield Sigma Limited (both in liquidation, the “Fairfield Funds”), with Fairfield Sentry Limited being the largest “feeder fund” to Bernard L. Madoff Investment Securities LLC, (“BLMIS”), will receive approximately $50 million as part of the settlement with JP Morgan announced today by Irving Picard.

Kenneth Krys, the court-appointed Liquidator of the Fairfield Funds and the Foreign Representative of the Fairfield Funds in connection with its Chapter 15 bankruptcy case pending in New York, commented on today’s settlement, “This is a significant milestone in the Liquidator’s on-going efforts to realize funds for distribution to the victims of the Madoff Ponzi scheme that invested through Fairfield Sentry and its affiliated funds in liquidation.”

David Molton, a partner at the international law firm Brown Rudnick and counsel to the Fairfield Funds’ Liquidator, added, “Irving Picard and his team at Baker Hostetler should be commended for their efforts in getting this deal done.  From our perspective, this settlement brings to fruition a key aspect of the Liquidator’s settlement agreement with Mr. Picard, the sharing of recoveries from their respective clawback claims against parties such as JPMorgan, and should set the groundwork for future settlements benefitting both the BLMIS and Fairfield Funds’ estates.”

The payment of approximately $50 million to the Fairfield Funds is in accordance with the Liquidator’s settlement agreement with the Madoff Trustee that was finalized in 2011, which provided a unique vehicle for the Liquidator to work with Mr. Picard with respect to their respective clawback claims to maximize recoveries for the benefit of their respective stakeholders

Approximately 95% of Fairfield Sentry’s assets were invested with BLMIS.  When the Fairfield Funds entered liquidation in the British Virgin Islands in 2009, the Liquidator hired Brown Rudnick to protect and recover the Fairfield Funds’ assets in the United States. On behalf of the Liquidator and the Fairfield Funds, Brown Rudnick has commenced over 300 “claw-back” lawsuits in New York against investors seeking return of over $6 billion paid during the Madoff fraud.