Madoff Trustee Moves To Stop N.Y.-Merkin Deal

Aug 2 2012 | 12:57pm ET

The trustee in the Bernard Madoff Ponzi scheme case yesterday asked a federal judge to block New York State's $410 million settlement with Madoff feeder fund manager J. Ezra Merkin.

Irving Picard warned that the deal, brokered by New York State Attorney General Eric Schneiderman, could imperil his efforts to maximize and fairly distribute  money to Madoff's victims.

"If other attorneys general around the country could simply walk into state courts and secure settlements as the NYAG did, the BLMIS estate would be decimated, with residents of various states favored," Picard said in court yesterday.

"Put simply, the State of New York should not be permitted to wreak havoc on that long standing federal mandate by using New York State law to give its citizens and perhaps others in a select group a jump-start over all of the victims of this heinous fraud."

A spokeswoman for Schneiderman dismissed Picard's actions as "inappropriate and without legal merit."

"Merkin's money is not limitless, and with the prospect of over $400 million depleted through the settlement, the trustee is concerned that little or nothing will be left for BLMIS customers," Picard said. He is seeking $500 million from Merkin.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.