New York Sues Alleged Madoff 'Middleman' Merkin.
Fund manager J. Ezra Merkin was charged by New York top legal officer with concealing from his clients an investment of more than $2.4 billion with convicted fraudster Bernard L. Madoff.
Several of Merkins' management companies were also charged, including Gabriel Capital Corporation. Merkin managed several funds, including Ascot Fund Limited, Gabriel Capital L.P., and Ariel Fund.
The charges were filed by New York Attorney General Andrew Cuomo, who alleges that for nearly 20 years Merkin steered clients' money to Madoff without their permission. Other charges against Merkin are that he ignored irregularities and "other glaring red flags." Cuomo's lawsuit seeks payment of damages an disgorgement of all fees by Merkin.
"Though acting primarily as a marketer and a middleman, Merkin pocketed hundreds of millions of dollars in management and incentive fees from his investors," Cuomo said.
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|Title Annotation:||J. Ezra Merkin; Bernard L. Madoff|
|Publication:||International Business Times - US ed.|
|Article Type:||Brief article|
|Date:||Apr 6, 2009|
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