Panel Awards $7 Million To Madoff Feeder Investor

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.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

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.