Saturday, 1 October 2016
Last updated 12 hours ago
Jul 16 2012 | 10:46am ET
Investors in J. Ezra Merkin's Bernard Madoff feeder funds have, to date, done a good deal better than direct victims of the Ponzi scheme.
The liquidator for Merkin's Ariel Fund and Gabriel Capital Corp. sent another $110 million to victims last week. A New York state judge in Manhattan approved the distribution, the third by Bart Schwartz, bringing the total send to Merkin clients to $500 million—compared to just $333 million to Madoff customers.
And there's more to come, Schwartz said.
“My team and I will continue in our efforts to maximize overall returns to investors, including through prudent, value-preserving liquidation of the funds’ remaining assets, and through pursuing additional recoveries.” Schwartz said. “We continue to make good progress in our ongoing value realization efforts, and we will seek Court approval for further interim distributions at the earliest prudently feasible date.”
Merkin clients, among them charitable organizations and schools, lost $1.2 billion when Madoff's fraud collapsed in December 2011. Last month, he settled a lawsuit filed by the New York attorney general for $410 million, money which does not count towards the $500 million Schwartz has collected and distributed.