Ruth Madoff's $600,000 Deal With Trustee Approved By Judge

(Bloomberg) -- A $600,000 settlement between Bernard Madoff’s wife and the trustee raising money for victims of the con man was approved by a New York judge, resolving a decade-old lawsuit against the former socialite.

The deal, reached May 3, was approved Tuesday by U.S. Bankruptcy Judge Stuart Bernstein in Manhattan. Under the agreement, Ruth Madoff will make an upfront cash payment of $250,000 to a fund for victims and transfer another $344,000 from accounts she set up for her grandchildren. She also agreed that all her remaining assets would be transferred to the trustee after she dies.

Ruth Madoff, who’s been living quietly out of the public eye since her husband began serving a 150-year prison term, was accused in 2009 of getting $44 million in phony profit from her husband’s $20 billion Ponzi scheme. She long denied the claims and has always said she didn’t know about the fraud.

The couple earlier agreed with federal prosecutors to forfeit their homes, financial holdings and other property, though Ruth Madoff was allowed to keep $2.5 million. That deal didn’t preclude the trustee, Irving Picard, from going after the money.

Read More: The Madoff Players: Where Are They Now and What Are They Up To?

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