Merkin Investors To Get $200 Million Back

May 28 2010 | 9:26am ET

Investors in two Bernard Madoff feeder funds are set to get a decent chunk of their money back.

Bart Schwartz, the court-appointed receiver in the case, this week filed a plan to return $200 million to 278 investors in J. Ezra Merkin’s Ariel Fund and Gabriel Capital Corp. The figure represents only about one-sixth of the $1.2 billion Merkin investors lost in the Madoff scandal, although Schwartz said that, on average, investors would get back about one-third of their losses.

All told, Schwartz has recouped about $270 million for the funds’ investors. The funds, which had only about 30% of their assets invested with Madoff, and the rest with Cerberus Capital Management, still hold roughly $1 billion in assets awaiting liquidation.

Unlike his old friend Madoff, who is serving 150 years in prison for running the largest Ponzi scheme in history, Merkin, a former chairman of GMAC, has not been charged criminally. But he is battling a series of lawsuits, including one filed by New York State Attorney General Andrew Cuomo.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...