Thursday, 21 August 2014
Last updated 14 hours ago
Feb 18 2010 | 2:12am ET
J. Ezra Merkin will have his day in court, whether he wants it or not.
Merkin, the former GMAC Financial chairman and Bernard Madoff feeder fund manager, lost his bid to have a lawsuit filed by New York State Attorney General Andrew Cuomo tossed. Judge Richard Lowe of New York State Supreme Court rejected Merkin’s allegations that Cuomo’s lawsuit did not meet legal standards.
Cuomo accused Merkin of “recklessly” investing billions of his clients’ money with Madoff, who pleaded guilty last year to running a $65 billion Ponzi scheme. The lawsuit alleges that Merkin poured almost all of the assets of his Ascot Partners and Ascot Fund, as well as about one-third of the assets of his Gabriel Capital Corp.—also named as a defendant in the lawsuit—without notifying most of his investors.
Cuomo called Merkin “a glorified mailbox.”
Merkin’s lawyers showed Lowe e-mails from “about 10 investors” indicating that they knew he was investing their money with Madoff, but the judge ruled that those e-mails “fail to demonstrate that dismissal is warranted at this early state of this action.”
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note