Madoff settles in SEC case

The Baltimore Sun

NEW YORK - Wall Street money manager Bernard L. Madoff has settled a large part of the civil case brought against him by the Securities and Exchange Commission, the agency said yesterday.

Without admitting any wrongdoing, Madoff agreed to a permanent injunction prohibiting him from disposing of any assets in connection with the SEC lawsuit over the alleged $50 billion Ponzi scheme he is accused of running, officials said in a statement.

Consent degrees and permanent injunctions are common in settling SEC lawsuits, and the action involving Madoff, which is subject to approval by a federal judge in Manhattan, does not resolve the criminal case against him.

Madoff is under house arrest at his $7 million Upper East Side apartment on a $10 million bond. Madoff was arrested Dec. 11. He had reportedly confessed to his sons that he had stolen from investors for years.

The federal criminal case is scheduled to be in court tomorrow.

Investors who lost money with Madoff include baseball Hall of Famer Sandy Koufax, New York Mets chief executive Fred Wilpon, Sen. Frank R. Lautenberg of New Jersey, talk-show host Larry King and developer Larry Silverstein, according to a court filing by Irving Picard, the trustee whose job it is to liquidate Bernard L. Madoff Investment Securities LLC.

The amounts that Madoff will have to pay in penalties and disgorgement of alleged illegal proceeds are to be determined later, the SEC said.

Ira Sorkin, Madoff's defense attorney, could not be immediately reached for comment.

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