According to the Wall Street Journal, “One of the largest offshore fund managers that channeled cash to Bernard Madoff will return $860 million in stolen money under a settlement with the liquidators cleaning up after his Ponzi scheme. Two British Virgin Islands funds managed by Kingate Management Ltd. Agreed to repay 93% of what they received from Madoff’s phantom investment fund, according to papers filed July 24 in the U.S. Bankruptcy Court in New York.”

On March 12, 2009, Madoff pleaded guilty to 11 federal felonies and admitted to turning his wealth management business into a massive Ponzi scheme. The investment scandal defrauded thousands of investors of billions of dollars. Madoff is in the 10th year of a 150-year sentence at a minimum security federal correctional institution in Butner, North Carolina.