New York AG Andrew Cuomo is monitoring the civil lawsuits against Madoff enabler Ezra Merkin, the Post reports. Merkin blew at least $1.8 billion of client money on the scam, and is facing a blizzard of lawsuits.
NY Post: Merkin, the fallen hedge-fund billionaire who lost as much as $3 billion in investor funds in Bernie Madoff’s alleged $50 billion Ponzi scheme, has attracted the attention of New York State Attorney General Andrew Cuomo, whose lawyers are said to be looking over various pieces of evidence ahead of a possible full-fledged probe, The Post has learned…
Lawyers working for AG Cuomo have been closely monitoring the lawsuits against Merkin, sources familiar with the matter tell The Post, and are weighing whether to launch an investigation into his practices with Madoff and his bogus investment funds.
Merkin promised his investors a careful and wise investment strategy that would scour dozens of different options – but at least one fund, his $1.8 billion Ariel Fund, had all its assets invested with a single entity, Madoff.
Despite this apparent misleading marketing message given to his investors – and despite the fact that these investors, including charities and universities could have invested directly with Madoff without paying any fees – Merkin pocketed hundreds of millions of dollars in fees over the years.
Meanwhile, Merkin’s wealthy neighbours at 740 Park Avenue are appalled:
Merkin lives in a duplex apartment at 740 Park Avenue in Manhattan, a co-op building known as the richest address in New York…
Michael Gross, author of a book about the swanky building, said 740 Park’s wealthy denizens are all of afluster about Merkin’s legal mess. “I am sure they are all worried about what all this means for the value of their apartments and the financial stability of their co-op,” he said.
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