Ivy Asset Management agreed to pay $210 million to settle lawsuits for advising clients to invest with Ponzi schemer Bernard Madoff, the New York attorney general said on Tuesday.
The New York-based investment adviser, a subsidiary of Bank of New York Mellon Corp, withheld damaging information about Madoff to make millions of dollars in fees, New York Attorney General Eric Schneiderman said in a statement.
Between 1998 and 2008, the firm was paid more than $40 million to conduct due diligence and advise clients regarding Madoff investments, Schneiderman said.
Clients lost more than $236 million when Madoff's Ponzi scheme collapsed, the statement said.
"Ivy deliberately concealed negative facts it uncovered," Schneiderman said in the statement. "As a result, its clients suffered massive and avoidable losses."
The New York attorney general's office sued Ivy in 2010 for fraud and breach of fiduciary duty. The settlement resolves litigation by the office,
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