Peter Madoff, the younger brother of Ponzi-schemer Bernard, faces one less legal problem these days.
A Long Island law student has settled his lawsuit seeking more than $475,000 in which he had accused Peter Madoff of losing his inheritance in the fraud.
Andrew Samuels, 22, of Dix Hills, settled the case on July 29 for a monetary sum that is confidential under the terms of the agreement, said his attorney, Stephen Schlesinger.
While Schlesinger wouldn't comment on the settlement amount, a legal source not involved in the case who didn't want to be identified said it was less than the nearly $480,000 originally requested in the litigation.
Attorneys for Madoff, of Old Westbury, who had been a senior managing director at Bernard L. Madoff Investment Securities Llc., didn't return telephone calls seeking comment.
Samuels originally accused Peter Madoff of violating his duties as trustee of a fund involving money from an inheritance.
Madoff denied wrongdoing and said he wasn't involved in Bernard's scheme.
While the Samuels lawsuit was pending, Peter Madoff's assets were frozen by Nassau County State Supreme Court Justice Stephen Bucaria, and he was allowed to spend $10,000 a month to cover mortgage, taxes and other living expenses.
In April, Peter Madoff was sued in a Florida federal bankruptcy court by the liquidator of Bernard Madoff's London operation over the return of a vintage Aston-Martin vehicle. The liquidators alleged that the $235,000 car was purchased with funds from the Madoff company.
The case has been transferred to Manhattan.
Peter Madoff has not been accused of wrongdoing in the Ponzi scheme, which netted his brother Bernard a 150- year prison sentence. Investigators say the scam bilked investors of $13 billion to $21 billion.
Samuels, who is attending Brooklyn Law School, also filed a claim earlier this year with the special bankruptcy trustee to recoup his losses.