2/17/10

NYPost: Judge tells Attorney General Cuomo he can sue for Fraud Madoff Feeder J. Ezra Merkin

It's impressive that disgraced financier J. Ezra Merkin has been able to delay and deter lawsuits against him for so long now. His buddy Bernie Madoff is sitting in jail while Merkin fends off the suits of AG Cuomo and other defrauded investors. Cuomo has accused Merkin of, "deceptive, negligent and reckless conduct."

Since pseudo-scholar Merkin is said to be fond of quoting Shakespeare, we invoke for him appropriate lines from a well-known soliloquy:
For who would bear the whips and scorns of time,
The oppressor's wrong, the proud man's contumely,
The pangs of despised love, the law's delay,
The insolence of office and the spurns
That patient merit of the unworthy takes,
When he himself might his quietus make
With a bare bodkin?
From the Post:
Ezra J. Merkin, who is accused of funneling billions of investors to notorious Ponzi scammer, is facing civil charges under the Martin Act, which grants the Attorney General special powers to punish Wall Street fraudsters.

State Supreme Court Justice Richard Lowe today ruled that Cuomo has sufficient grounds to pursue the lawsuit. Merkin is alleged to have lost some $1.2 billion in investor money while ringing up $470 million in management and incentive fees.

The funds Merkin ran acted as so-called feeder funds, or funds that invest in other funds. Merkin’s funds were heavily -- and in some cases entirely -- invested in Madoff’s funds.

Cuomo alleges that Merkin’s marketing materials and offering documents promoting his funds "falsely represented that [he] was involved in day-to-day management, and that the success of the fund depended on Merkin’s abilities as a money manager," the order reads...
Also see the Times and WSJ.

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