Castor Pollux Wins Madoff Trading Business at Auction
Castor Pollux Wins Madoff Trading Business at Auction

Published: April 28, 2009
Castor Pollux Securities bought Bernard Madoff’s trading business at auction on Monday for up to $25.5 million, a small fraction of what it had been worth.

The court-appointed trustee winding down Bernard L. Madoff Investment Securities said in a statement late on Monday that Castor Pollux, a Boston financial company, would pay $1 million at closing and up to $24.5 million in deferred compensation through December 2013.

Three bidders competed in the auction for the trading unit, which was once valued at $1 billion. Castor Pollux originally bid $15.5 million in March.

“The auction today yielded a higher and better offer for the market-making business,” said the trustee, Irving Picard. “The additional consideration that we will receive as a result of the auction will benefit Madoff’s victims.”

He said the deal allowed those victims to participate in future earnings of the business. Mr. Picard said he had recovered about $1 billion in assets of Mr. Madoff, who ran a worldwide fraud that drew in as much as $65 billion.

Mr. Madoff, 70, a former nonexecutive chairman of the Nasdaq stock market, was arrested on Dec. 11 and pleaded guilty on March 12 to charges including securities fraud, money-laundering and perjury. He is in jail pending a scheduled sentencing in June.

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