A recent settlement will see a group of Bernie Madoff’s victims in his Ponzi scheme receive $405 million. Clients of hedge fund manager J. Ezra Merkin, including New York Law School, Bard College, Harlem Children’s Zone, Homes for the Homeless and the Metropolitan Council on Jewish Poverty are included in the settlement. New York state will also get $5 million to cover the legal costs of the settlement.
Attorney General Eric Schneiderman worked out the settlement, and called it “a victory for justice and accountability.”
“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,” Schneiderman said. “By holding Mr. Merkin accountable, this settlement will help bring justice for the people and institutions that lost millions of dollars.”
Merkin had managed hundreds of investors’ money in four different funds. Many investors are charitable organizations and others asked not to be identified, reports the Christian Science Monitor. Most will get more than 40% of their losses, but only up to $5 million.
Prosecutors say Merkin had concealed Madoff’s role by being not quite honest on documents and quarterly reports.
Previously in Madoff news: Madoff Victims Will Start Getting Refunds This Week
Bernard Madoff victims to get $405M in settlement [Christian Science Monitor]