12/25/08

NYPost: NYU Lawsuit Filed Against Madoff Crony J. Ezra Merkin

NYU has filed a lawsuit against J. Ezra Merkin making damaging allegations as reported in the NY Post. The paper called Merkin a "tarnished financier" and concluded that, "The once-respected money manager and philanthropist has seen his reputation crumble as a result of his ties with Madoff."

One damaging aspect of the legal filing was the allegation of Merkin's attempts at willful and calculated deceit of NYU:
According to the lawsuit, Merkin in October suggested that NYU consider authorizing one of his funds, known as Gabriel, to invest the school's money with Madoff. The school declined, saying there was no oversight of Madoff's activities. At the time, Merkin declined to mention he had already invested nearly $25 million of NYU's money with Madoff, the school charges.

Merkin's ties to Madoff have slaughtered many already bruised university endowments. In addition to NYU, Merkin also managed money for Tufts University in Medford, Mass., which lost $20 million as a result of Merkin's reliance on Madoff. New York's Yeshiva University, where Merkin served as a trustee and chairman of its investment committee, lost $110 million.
The rest of the story is here.

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