A settlement announced recently will result in $405 million being paid to victims of Bernard Madoff’s historic investment scam. The clients of hedge fund manager J. Ezra Merkin will receive $405 million from the settlement. New York state will get $5 million to cover the cost of the settlement worked out by Attorney General Eric Schneiderman. The victims include New York Law School, Bard College, Harlem Children’s Zone, Homes for the Homeless and the Metropolitan Council on Jewish Poverty. The Attorney General called the agreement “a victory for justice and accountability,” and had this to say about the settlement:
Many New Yorkers entrusted their investments to Mr. Merkin, who then steered the money to Madoff while receiving millions of dollars in management and incentive fees. By holding Mr. Merkin accountable, this settlement will help bring justice for the people and institutions that lost millions of dollars.
Merkin, a former NASDAQ chairman, had managed investments for hundreds of investors in four funds: Ariel Fund Ltd., Gabriel Capital L.P., Ascot Fund Ltd. and Ascot Partners L.P. According to the Attorney General’s office, many of the investors are New York residents and charitable organizations. Most investors will get more than 40% of their losses, but only up to $5 million. Those who lost more could receive additional payments, depending on the number of investors who seek reimbursement.
Source: Washington Post
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