Fairfield reaches settlement in Madoff loss

NEW HAVEN, Conn. (AP) — The town of Fairfield will receive $2.88 million under a settlement of a lawsuit over losses to its pension fund due to imprisoned financier Bernard Madoff's fraud scheme.

David Golub, Fairfield's attorney, said with the latest settlement approved Friday in Stamford Superior Court, the town has recovered the $15 million in principal invested with Madoff since 1997.

The new settlement is with investment firm Maxam Capital Management, which did not admit any wrongdoing. The town had accused Maxam and others of misrepresenting the investment potential, saying they knew the claimed strategy could not produce consistent returns of 8 to 12 percent annually.

An attorney for Maxam declined comment.

Madoff, who pleaded guilty in 2009 to fraud charges, is serving a 150-year prison sentence. Thousands of people lost about $20 billion from his scheme.