1/17/09

Clusterstock Blog: J. Ezra Merkin is the typhoid mary of the Madoff Malady

Would that Merkin was the unwitting carrier of the Madoff plague. We expect a more tangled narrative to unwind.
Ezra Merkin: The Typhoid Mary Of Madoff's Fraud
Assuming Ezra Merkin didn't know Bernard Madoff was engaged in a massive fraud, he probably thought he was doing a favor for the charities whose board he sat on when he hooked them up with Madoff. After all, Madoff promised unwavering returns while charging minimum fees.

Now Merkin could face legal peril for his role. At the heart of the legal peril is what now seems like an obvious conflict of interest: Merkin was sitting on charity boards while acting as their investment adviser, personally profiting from fees collected from non-profits. Now Andrew Cuomo is investigating.

...The intersection of charity and finance in New York is well known. Big financiers compete to be on various charity boards in hopes it will raise their status and prestige. Unfortunately, big hazards can await them if they don't take care to remember not to use their position on the charity boards to generate advisory fees for themselves.

1 comment:

Anonymous said...

Tzvee -
They all thought he was front running, which is illegal. That is why they didn't ask any questions. So they got what they deserve.