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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR