A money manager involved in the Madoff ponzi scheme has agreed to pay over 400 million dollars out to bilked investors.
June 25, 2012– Ezra Merkin, a money manager, agreed to pay out $410 million in order to settle a suit the state of New York brought that accused the money manager of secretly steering money from clients to Bernard Madoff’s ponzi scheme.
Eric Schneiderman, the Attorney General of New York said, “Through holding Merkin accountable, justice will be brought by this settlement. We recovered more than $400 million for investors that were affected by the largest Ponzi scheme in the nation’s history.”
Merkin, under the court agreement, will have to pay $405 million to investors over the next three years. The remaining $5 million goes to the state of New York. Merkin’s attorney, Andy Levander, said that his client is pleased a resolution was reached that is fair for his investors, of which many are institutions and friends that he cared about deeply.
The settlement means that investors should recuperate more than 40% of their original losses said the AG’s office. Those who were unaware that Merkin was funneling money to the Ponzi scheme will received more compensation.
This settlement is separate from another case against Merkin brought by Irving Picard. Picard is the trustee searching for money for the victims of Madoff. Picard filed suit to get $500 million back from Merkin.