A Long Island, N.Y., law student who sued the brother of Bernard Madoff for depleting his trust fund in a multibillion-dollar Ponzi scheme has settled for less than his original claim, according to his attorney. Andrew Samuels, of Dix Hills, N.Y., sued Peter Madoff for depleting his $475,000 trust fund by paying out “fictitious returns” to other investors in the scam. The fund was started by Samuels’ grandfather and his wife, Ruth.
Peter Madoff had moved to dismiss the case, arguing he owed no fiduciary duty to the second-year Brooklyn Law School student. In March, Nassau Supreme Court Justice Stephen A. Bucaria ordered a temporary freeze on Peter Madoff’s assets but modified the order in April, after the parties had stipulated to allowing him a $10,000 monthly budget for “necessary” expenses with the provision he set aside enough money to pay off Samuels’ claim if the matter got to trial. After several hearings were adjourned, Samuels v. Madoff, 09-05534, was discontinued at the end of July.
