Tuesday, 30 August 2016
Last updated 19 hours ago
May 4 2012 | 11:35am ET
Bernard Madoff feeder fund mogul J. Ezra Merkin has paid more than $1.6 million fighting a $1.75 million arbitration award—but the double down busted yesterday when a New York appeals court rejected his bid to have that award junked.
A five-judge panel of the state Appellate Division upheld the award to Merkin investor Noel Wiederhorn, a 71-year-old retired pediatrician from New Jersey. Wiederhorn says he lost his $1.46 million nest egg in the Madoff Ponzi scheme after Merkin secretly invested his money with the fraudster.
The appeals court also rejected Merkin’s bid to force Wiederhorn to pay his legal costs, which he estimated at $1.6 million in June. Merkin is now on the hook for about $1.95 million to Wiederhorn, as the three-year-old arbitration award is subject to 9% interest.
Merkin can still fight the award, asking the Appellate Division to reconsider or appealing to the state’s highest court, the Court of Appeals.