Ezra Merkin Charged in Madoff Ponzi Scheme

Merkin says he didn’t know

The New York attorney general has added another name to the list of people charged in connection with Bernie Madoff’s Ponzi scheme. Money manager J. Ezra Merkin was charged today. Merkin says he was stunned to learn of Madoff’s scheme, and Merkin’s attorney has called the state’s lawsuit “hasty and ill-conceived.”

Merkin’s role

Merkin is accused of playing the role of a “feeder” in Madoff’s scheme, directing cash advances and funds meant for other causes into Madoff’s accounts. New York’s lawsuit says Merkin funneled more than $2.4 billion to Madoff.

“Merkin duped individual investors, non-profits, and charities into believing he was responsibly managing their investments, when in actuality he was dumping them into history's largest Ponzi scheme,” New York Attorney General Andrew Cuomo said.

Merkin’s profits

Cuomo says Merkin pulled in $470 million in payments for money management and incentive fees from Madoff. The State of New York isn’t the first entity to file a lawsuit against Merkin for his alleged role in the scheme. New York University and the publisher of the New York Daily News, Mort Zuckerman, have already filed suits against Merkin.

Merkin’s history

Merkin is a well-known philanthropist in New York. He used to be chairman of GMAC Financial Services, the financing arm of General Motors Corp.  Merkin operated two funds, Gabriel Capital and Ariel Fund, that acted as “feeder” funds for Madoff. ... click here to read the rest of the article titled "Ezra Merkin Charged in Madoff Ponzi Scheme"