On the day a jury trial was set to begin between the owners of the NY Mets and the trustee for the victims of convicted Ponzi schemer Bernie Madoff, the two sides have settled the lawsuit for $162 million earlier this morning, the NY Times reports.
Saul Katz and Fred Wilpon, who also run Sterling Equities, will not pay anything for the next three years, the Associated Press reports.
Both men were accused by Irving Picard, the trustee for Madoff’s victims, of investing in Madoff’s fund despite knowing that it had been posting fraudulent returns. The civil trial that was set to commence today would have determined the amount of money Mssrs. Katz and Wilpon owed Picard and trustees, who were seeking $303 million.
Per the agreement:
The $162 million is to be paid out of money Wilpon and Katz expect to recover as a “net loser” of the Madoff scheme. Recovery chances are good, said David J. Sheehan, counsel to Picard.
Mr. Picard will be dropping his willful blindness claim against Mssrs. Katz and Wilpon as part of the settlement.
Founded in 1972, Sterling Equities has developed over 23.3 million square feet of commercial property.