Ex-GMAC Chairman Faces Charges Over Madoff Plot

Law360, New York (April 6, 2009, 12:00 AM EDT) -- Hedge fund operator J. Ezra Merkin was charged Monday by New York Attorney General Andrew Cuomo for allegedly duping hundreds of investors by secretly steering $2.4 billion of their money into Bernard L. Madoff's massive Ponzi scheme.

In a 54-page civil fraud complaint filed in the New York State Supreme Court, Cuomo alleges the Madoff middleman ignored irregularities and “glaring red flags” when he funneled clients' money to the disgraced financier for $470 million in management and incentive fees.

“Merkin profited enormously from Madoff's scheme, reaping...
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