Tuesday, 30 August 2016
Last updated 16 hours ago
Oct 25 2011 | 6:53am ET
Bernard Madoff feeder fund magnate J. Ezra Merkin has been ordered to pay more than $7 million to an investor in one of his funds.
Merkin, who last month won the dismissal of several lawsuits against him and his hedge funds, was hit with a $7.01 million arbitration decision. The winner of that battle, former Odd Jobs Stores CEO Moshael Straus, filed a petition in New York State court last week seeking to have the award confirmed.
Straus was an investor in Merkin's Ascot Partners, putting in more than $5 million. But Straus did not know that Ascot was a Madoff feeder fund, and Merkin "intentionally breached" his duties as fund manager, the American Arbitration Association panel ruled.
Straus and Merkin served together on Yeshiva University's board of trustees. The university is said to have lost as much as $140 million investing with Ascot.