Wall Street swindler victims to receive payouts within 3 years
June 27, 2012, 12:16 am TWN
ALBANY, New York--Investors in four funds that lost more than US$1.2 billion in Wall Street swindler Bernard Madoff's Ponzi scheme will receive US$405 million in payouts over the next three years, New York's attorney general said Monday.
A settlement with hedge fund manager J. Ezra Merkin was approved Friday in state Supreme Court in Manhattan.
It settled state civil charges filed in 2009 claiming breach of fiduciary duty by Merkin. He had collected management fees while steering assets to Madoff from Ariel Fund Ltd., Gabriel Capital L.P., Ascot Fund Ltd. and Ascot Partners L.P.
"By holding Mr. Merkin accountable, this settlement will help bring justice for the people and institutions that lost millions of dollars," Attorney General Eric Schneiderman said.