J. Ezra Merkin, the former GMAC Financial chairman who ran a stable of Bernard Madoff feeder hedge funds, is cooperating with New York state authorities, one said yesterday.
Attorney General Andrew Cuomo’s office said that “Merkin and his counsel have been cooperative thus far in providing documents and other information,” Reuters reports. Cuomo said last month that he would subpoena Merkin and his three funds, Gabriel Capital Corp., Ariel Fund and Ascot Partners, as part of an investigation into whether Merkin defrauded the non-profits that invested with him.
Despite his close ties to Madoff, accused of running a $50 billion Ponzi scheme, Merkin has painted himself as a victim of his friend’s scam. Still, his funds have been sued by angry investors who say he invested with Madoff without notifying them.