(CN) - Federal authorities in Manhattan announced the recovery of $625 million from the massive Ponzi scheme masterminded by Bernie Madoff that defrauded investors out of billions.
Carl Shapiro, a Boston philanthropist who allegedly made over $1 billion investing with Madoff, agreed to hand over $625 million in a settlement filed in Manhattan's federal court.
The money will go to Madoff's victims.
Shapiro had a nearly 40-year business relationship with Madoff and his investment company. After authorities exposed Madoff's fraud, they discovered that Shapiro had withdrawn hundreds of millions more than he initially invested, making it obvious that he profited from the Ponzi scheme.
While the settlement agreement did not name any wrongdoing on the part of Shapiro, it does not release him from criminal liability.
In conjunction with the settlement, the Justice Department announced the appointment of Irving Pickard as special master in the Madoff case. As court-appointed trustee, Pickard will oversee the liquidation of Madoff's money and the process of fairly distributing money to those who Madoff left holding the bag.
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