(Bloomberg News) Bank of New York Mellon Corp.'s Ivy Asset Management agreed to a $210 million settlement with the state of New York to resolve allegations it misled clients that invested with Bernard Madoff.
Ivy, which was sued in 2010 by then-New York Attorney General Andrew Cuomo, was accused of concealing from investors negative information it learned about Madoff in order to keep collecting fees.
"Today's settlement brings accountability for one of the worst financial frauds in American history, and justice to defrauded investors," New York Attorney General Eric Schneiderman said in a statement.
Ivy was paid more than $40 million between 1998 and 2008 to give advice and conduct due diligence for clients with large Madoff investments, according to the attorney general's office. Ivy's clients lost more than $236 million after Madoff's Ponzi scheme collapse, the office said.
Kevin Heine, a spokesman for BNY Mellon, referred a request for comment to Ivy. The settlement couldn't be verified in court records.
The case is the People of the State of New York v. Ivy Asset Management, 450489-2010, New York State Supreme Court (Manhattan).