Merkin Investors Get Another $110 Million

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.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note