Largest beneficiary of Madoff fraud gives up $7B

The trustee recovering money for Bernard Madoff’s burned investors has reached a $7.2 billion settlement with the estate of a Florida philanthropist and businessman who had been the single-largest beneficiary of the fraud.

The settlement with the estate of Jeffry Picower was detailed Friday in Manhattan court papers.

U.S. Attorney Preet Bharara called it “a truly historic settlement” and a “game changer for Madoff’s victims.”

Barbara Picower, representing her late husband’s estate, entered into the agreement with the U.S. attorney’s office.

She said in a statement that her husband was “in no way complicit” with Madoff’s fraud. She said the estate would “return every penny received” through Madoff investments. Picower drowned after suffering a heart attack in the swimming pool of his Palm Beach, Fla., mansion on Oct. 25, 2009.