Madoff Victims to Receive More than $43 Million in Settlement

A Department of Labor investigation showed that Austin Capital Management mishandled retirement and benefit plan funds by indirectly investing with Bernie Madoff.

The Department of Labor has finalized plans to pay more than $34 million to compensate funding for employee benefit plans that was invested indirectly into Bernard L. Madoff’s Ponzi scheme. Austin Capital’s parent company, Keycorp has already agreed to pay $9 million to compensate benefit fund losses, making the total recovery more than $43 million.

According to the DOL, Austin Capital violated the Employee Retirement Income Security Act, based on findings from the investigation.

"This settlement will benefit thousands of workers and retirees whose hard-earned retirement savings and health plans were affected by Bernard Madoff," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi, in a statement on the Department of Labor website.

Funds from Austin Capital were invested into Rye Select Broad Market Prime Fund offered by Tremont Partners Inc. From there, the funds were invested with Madoff.

The instigation determined that retirement funds were imprudently invested. 

Download Center

HTML - No Current Item Deck
  • Free Safety Management Software Demo

    IndustrySafe Safety Management Software helps organizations to improve safety by providing a comprehensive toolset of software modules to help businesses identify trouble spots; reduce claims, lost days, OSHA fines; and more.

  • The Top 5 Safety and Technology Trends to Watch in 2019

    Get the latest on trends you can expect to hear more about in 2019, including continued growth of mobile safety applications, wearable technology, and smart PPE; autonomous vehicles; pending OSHA recordkeeping rulemaking; and increased adoption of international safety standard, ISO 45001.

  • Get the Ultimate Guide to OSHA Recordkeeping

    OSHA’s Form 300A posting deadline is February 1! Are you prepared? To help answer your key recordkeeping questions, IndustrySafe put together this guide with critical compliance information.

  • Safety Training 101

    When it comes to safety training, no matter the industry, there are always questions regarding requirements and certifications. We’ve put together a guide on key safety training topics, requirements for certifications, and answers to common training questions.

  • Conduct EHS Inspections and Audits

    Record and manage your organization’s inspection data with IndustrySafe’s Inspections module. IndustrySafe’s pre-built forms and checklists may be used as is, or can be customized to better suit the needs of your organization.

  • Industry Safe

OH&S Digital Edition

  • OHS Magazine Digital Edition - January 2019

    January 2019

    Featuring:

    • PREVENTING ERRORS
      Production vs. Safety 
    • EMERGENCY SHOWERS & EYEWASH
      Meeting the Requirements for Emergency Equipment
    • CONSTRUCTION SAFETY
      The State of Contractor Safety
    • FOOT PROTECTION
      The Three Keys to Effective Chemical Management
    View This Issue