Settlement Reached With Estate Of Man Who Made Billions Off Madoff Scheme

A federal judge approved the $7.2 billion settlement with the estate of Jeffrey Picower, and the money will go compensate Madoff's victims.

Picower drowned after suffering a heart attack in his swimming pool in 2009. His widow, Barbara Picower, issued a statement saying her husband “was in no way complicit with Madoff's fraud.”

“We will return every penny received from almost 35 years of investing with Bernard Madoff,” said Barbara Picower. “I believe the Madoff Ponzi scheme was deplorable and I am deeply saddened by the tragic impact it continues to have on the lives of its victims. It is my hope that this settlement will ease that suffering.''

The $7 billion amount represents the difference between what Picower invested with Madoff and what he withdrew.

It is apparently the largest civil forfeiture payment in American history.

Up until this point, the trustee had recovered $2.3 billion for Madoff victims.