Madoff Feeder Seeks Dismissal Of Investor Lawsuit

Aug 4 2010 | 2:48am ET

Bernard Madoff feeder fund manager J. Ezra Merkin at first did not succeed—in his bid to have the New York State attorney general’s lawsuit against him toss. But he’s trying again, this time seeking to have an investor lawsuit dismissed.

Merkin’s lawyers on Monday told a federal judge that the investors suing him are unable to show that Merkin, whose clients lost about $1.2 billion in the $65 billion Madoff Ponzi scheme, “knew about, much less participated in, the Madoff fraud.”

Furthermore, no part of their lawsuit “gives rise to any inference, let alone the requisite strong inference, that the defendants acted with a fraudulent intent.”

BDO USA, Merkin’s auditors, are also seeking dismissal of the lawsuit.

“It’s a desperate effort by Merkin and others to dismiss a well-pleaded complaint that demonstrates their abject malfeasance,” Gregory Nespole, a lawyer for the plaintiffs, told Reuters.

New York Attorney General Andrew Cuomo has accused Merkin of steering $2.4 billion to Madoff while misleading them about where he was investing the money. Cuomo’s 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, without notifying most of his investors.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.