Ivy Asset Management agreed to pay $210 million to settle lawsuits over advising clients to invest with Ponzi schemer Bernard Madoff, the New York State 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, N.Y. Attorney General Eric Schneiderman said in a statement.
Clients lost over $236 million when Madoff's Ponzi scheme collapsed, the statement said.
The New York Attorney General's office sued Ivy in 2010 for fraud and breach of fiduciary duty. It claimed Ivy was paid more than $40 million for its advice and due diligence to clients regarding Madoff investments.
The settlement also resolved lawsuits by the U.S. Department of Labor and private plaintiffs, Schneiderman said.
Kevin Heine, a spokesman for Bank of New York Mellon, had no immediate comment.
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