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ederal prosecutors and the trustee charged with recovering assets in the Bernard L. Madoff bankruptcy announced settlements Friday that would add $7.2 billion to the cash available to compensate victims of Mr. Madoff’s global Ponzi scheme.

Details of the agreements with the estate of Jeffry M. Picower, a Palm Beach philanthropist who died in October 2009, were released in court documents and at a news conference in Lower Manhattan.

The settlements “will return every penny received from almost 35 years of investing with Bernard Madoff,” Mr. Picower’s wife, Barbara, said in a statement released through her lawyer, William D. Zabel of Schulte Roth & Zabel.

The Picower estate will pay $5 billion to the trustee, Irving H. Picard, and $2.2 billion to a federal victims fund to resolve a lawsuit filed last year, according to statements from Mr. Picard and United States attorney for the Southern District, Preet Bharara.

Via