Madoff company sold for $500,000

Toronto News.Net
Friday 27th March, 2009

Bernard Madoff's company which handled more than $50 billion of private invetsors funds, has been sold for $500,000.

The trustee of Bernard L. Madoff Investment Securities LLC closed the deal this week.

Irving Picard, who was appointed by the Securities Investor Protection Corp. released a statement Friday naming Castor Pollux Securities LLC, a Boston-based broker dealer, as the buyer.

The $500,000 is a base price, which will increase depending on the rate of turnover for the next three years. The maximum prices than can be paid is $15.5 million.

“This agreement is a successful outcome of the broadly marketed sales process we started in December,” Picard said in the statement.

The sale is subject to higher offers in a U.S. Bankruptcy Court-supervised auction, according to the statement. About 35 remaining employees of the unit were dismissed Friday as part of the planned sale, David Sheehan, a lawyer for Picard, said in an interview with Bloomberg.

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