Looks like all the rumours about Cuomo sniffing around are true.
Many of the charities say Merkin invested all or much of their money with Madoff without telling them, and now millions have vanished in Madoff’s $50 billion Ponzi scheme.
This is the first time a law enforcement agency has targeted anyone but Madoff in what has been described as Wall Street‘s biggest scam.
…Wednesday, a source familiar with the probe told The News that Cuomo’s charities bureau issued subpoenas to several nonprofits for which Merkin served as a board member while advising them on investments.
….Cuomo also subpoenaed groups where Merkin served on the boards, such as Carnegie Hall, the Rabbi Isaac Elchanan Theological Seminary, Bard College‘s Levy Economic Institute, the Caroline and Joseph S. Gruss Life Monument Funds and the Sar Academy, a yeshiva in Riverdale.
Merkin got fees from all these charities for investing their money in his own funds. These nonprofits aren’t Cuomo’s targets, mind you, he just wants their Merkin-related paperwork. Oh, and to make things that much more interesting, according to a few of the nonprofits, Merkin didn’t tell them that the money was going to Madoff.
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