We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Madoff Trustee Hits Ex-GMAC Chair With $500M Suit

Law360 (May 7, 2009, 12:00 AM EDT) -- The trustee liquidating Bernard L. Madoff's investment firm has filed a $500 million suit against financier J. Ezra Merkin, alleging that he knew that Madoff was running a massive Ponzi scheme.

The fraud suit by trustee Irving Picard, filed Thursday in the U.S. Bankruptcy Court for the Southern District of New York, seeks the return of hundreds of millions of dollars in “nonexistent principal” that Merkin allegedly withdrew from Madoff's firm before it collapsed.

The suit describes Merkin, the former chairman of GMAC Financial Services LLC,...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.