) -- The Trustee for investors in Bernard Madoff's Ponzi scheme reached a $1 billion settlement with Tremont Group Holdings, a fund of funds that was the second largest of the so called "feeder funds" that poured money into Madoff's fraudulent enterprise.

With the settlement, Madoff trustee Irving Picard has recovered more than $8.6 billion, or roughly half of the $17.3 billion invested in the scheme, according to a press release from the trustee sent out Thursday. The $8.6 billion figure includes a $5 billion settlement with the estate of Jeffry Picower which is under appeal.

The settlement also includes three co-defendants: Oppenheimer Acquisition Corp (which acquired Tremont Group in 2001) and Oppenheimer's corporate parents, MassMutual Holding and Massachusetts Mutual Life Insurance Company

Picard is still seeking damages from close to 1000 different entities, including global financial giants like

JPMorgan Chase

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Tremont is a unit of MassMutual Financial Group.


Written by Dan Freed in New York


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