J Ezra Merkin and the Madoff Investment Scandal

J. Ezra Merkin was a prominent financier and investor who was heavily involved in the Madoff investment scandal. He served as a trustee for several hedge funds that were managed by Bernard L. Madoff Investment Securities.

Merkin's involvement with Madoff began in the 1990s, and he introduced many of his wealthy clients to Madoff's investment strategies. He also served on the board of several organizations that were heavily invested in Madoff's funds.

In 2009, it was reported that Merkin's hedge funds had lost an estimated $1.4 billion due to Madoff's Ponzi scheme. Merkin was subsequently sued by several of his clients, who claimed that he had failed to properly supervise Madoff's operations and had misled them about the risks involved.

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GMAC was a significant investment for Cerberus in 2006, with Merkin as nonexecutive Chairman. This investment was nearly a washout.

Merkin had to resign as Chairman of GMAC in January 2009 to allow GMAC to obtain bank holding company status and access bailout money.

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J. Ezra Merkin has agreed to relinquish control of his funds to court-appointed trustees, including Guidepost Partners LLC and David Pitofsky, a litigation lawyer.

The attorney general's office requested the turnover agreement in connection with its civil fraud lawsuit accusing Merkin of funneling $2.4 billion to Bernard Madoff's Ponzi scheme.

Merkin's Ascot Partners fund is to be placed under the control of David Pitofsky, while the Ariel and Gabriel Funds are to be handed over to Guidepost Partners LLC.

The two court-appointed trustees are expected to oversee the funds' eventual liquidation.

Irving Picard, the trustee overseeing the liquidation of Madoff's assets, has said Merkin received tens of millions of dollars in management and performance fees.

One Merkin investor alleged in a court filing that the total surpassed $100 million.

Ascot Partners was one of the biggest feeders to Madoff and was entirely wiped out in his Ponzi scheme, in which investors are paid off with money from new clients.

The fund had a $1.7 billion account with Madoff, including deposits from New York University, Tufts University, Bard College, and Yeshiva University, where Merkin was a trustee.

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J. Ezra Merkin's business dealings were shrouded in mystery, with some investors unaware that their money was being invested in a hedge fund run by a convicted felon, Bernard Madoff.

He founded Gabriel Capital Group, a hedge fund that managed billions of dollars in assets.

Merkin's investors included Jewish institutions and philanthropists.

He was a major donor to Yeshiva University and other Jewish causes.

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