Merkin Pays $410M To End NY AG's Madoff Fund Loss Claims

Law360, New York (June 25, 2012, 12:08 PM EDT) -- Hedge fund manager J. Ezra Merkin reached a $410 million settlement Monday with the New York State attorney general's office over allegations that he funneled investors' money into Bernard L. Madoff's Ponzi scheme.

The deal resolves the state's April 2009 civil fraud case brought on behalf of investors in four Merkin-owned funds — Ariel Fund Ltd., Gabriel Capital LP, Ascot Fund Ltd. and Ascot Partners LP — whose assets were largely handled by Madoff.

Merkin told investors in offering documents that he was managing their money...
To view the full article, register now.