Former money manager J. Ezra Merkin has agreed to turn over hundreds of millions of dollars to duped investors in Bernard Madoff’s Ponzi scheme.
In a settlement announced June 25 by New York Attorney General Eric Schneiderman, Mirkin agreed to pay $405 million to compensate investors over a three-year period, and $5 million to the state of New York to cover fees and costs.
Merkin controlled four funds that invested more than $2 billion with Madoff on behalf of hundreds of investors, including many New Yorkers and charitable organizations.
While investors lost in excess of $1.2 billion, Merkin received hundreds of millions of dollars in management fees.
Among the victims, according to the Associated Press, were the Metropolitan Council on Jewish Poverty, New York Law School, Bard College, Harlem Children’s Zone and Homes for the Homeless. — jta