New Haven’s Westport Bank has agreed to pay more than $7 million to 240 investors who lost money in Bernard Madoff’s infamous Ponzi scheme, the Associated Press reports.
Former Attorney General Richard Blumenthal, who is now a U.S. senator, sued Westport and pension consultant PSCC Services Inc. in 2010 on behalf of the state’s Department of Banking, arguing that Westport violated state law by ignoring repeated indications of fraud and miscalculated fees.
Blumenthal originally sought to $16 million in damages from the two parties.
The bank argued it met its obligations and was not responsible for uncovering the fraud, the AP said.
Westport’s attorney told the AP that the bank did not admit wrongdoing and made an economic judgment to settle.
The AP said a federal jury in Hartford decided Wednesday that Westport was not liable in a case involving two of the investors, who reported losses of approximately $2 million.
