web analytics
September 22, 2014 / 27 Elul, 5774
At a Glance
News & Views
Sponsored Post
Meir Panim with Soldiers 5774 Roundup: Year of Relief and Service for Israel’s Needy

Meir Panim implements programs that serve Israel’s neediest populations with respect and dignity. Meir Panim also coordinated care packages for families in the South during the Gaza War.



Former 5th Av. Synagogue President Returns $410 Million to Madoff Victims

J. Ezra Merkin (R) with Rabbi Ya’acov Medan, Co-Dean of Yeshivat Har Etzion.

J. Ezra Merkin (R) with Rabbi Ya’acov Medan, Co-Dean of Yeshivat Har Etzion.
Photo Credit: Joel

Former money manager J. Ezra Merkin has agreed to turn over hundreds of millions of dollars to duped investors in Bernard Madoff’s Ponzi scheme.

More than 30 charities invested with Merkin, many of them with a Jewish affiliation.

The NY Post reported at the time that members of Manhattan’s Fifth Avenue Synagogue, where Merkin served as president, “suffered a $2 billion bloodbath.” Madoff, a non-member, was introduced to them by President Merkin.

Those victims included Ira Rennert, Mort Zuckerman, and Elie Wiesel.

In a settlement announced Monday by New York Attorney General Eric Schneiderman, Merkin agreed to pay $405 million to compensate investors over a three-year period, and $5 million to the State of New York to cover fees and costs. It is the first settlement resulting from a government action against Merkin.

A close business associate of Madoff’s, Merkin controlled four funds that invested more than $2 billion with Madoff on behalf of hundreds of investors, including many New Yorkers and charitable organizations.

While investors in Ariel Fund Ltd., Gabriel Capital LP, Ascot Fund Ltd and Ascot Partners LP, whose assets were largely handled by Madoff, lost in excess of $1.2 billion, Merkin received hundreds of millions of dollars in management fees.

“By holding Mr. Merkin accountable, this settlement will help bring justice for the people and institutions that lost millions of dollars,” Schneiderman said in a statement.

According to the statement, for nearly two decades Merkin presented himself as a skilled money manager and used his social and charitable connections to raise more than $4 billion from hundreds of individuals, charities and other investors. Merkin turned over to Madoff all of the money in the Ascot Funds, and a substantial portion of the Ariel and Gabriel Funds.

In misleading offering documents and quarterly reports, Merkin concealed Madoff’s role and misrepresented the role he was playing in managing the funds, the statement said. Acting primarily as a marketer and middleman, Merkin obtained hundreds of millions of dollars in management and incentive fees from his investors.

Investors could recover more than 40 percent of their cash losses. Investors who were not aware of Madoff’s role will receive a higher percentage of their losses, while those who were aware of Madoff’s role will be eligible to receive a smaller percentage.

Among the victims, according to The Associated Press, were the Metropolitan Council on Jewish Poverty, New York Law School, Bard College, Harlem Children’s Zone and Homes for the Homeless.

Merkin also is being pursued by Irving Picard, the court-appointed trustee charged with returning money to Madoff’s victims. Picard is trying to retrieve $500 million from Merkin and the funds.

Picard has entered agreements to recover $9 billion, more than half the cash claims related to the $64 billion Ponzi scheme.

JTA contributed to this article.

About the Author:


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

One Response to “Former 5th Av. Synagogue President Returns $410 Million to Madoff Victims”

  1. You're keeping me Alert and with your coverage of all things "real important'' exercise my knowledge to a degree of satisfaction. Thank you for your continuous valuable reporting!

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
Logos of the Arab Bank
Arab Bank Found Liable for Hamas Terror Funding
Latest News Stories
Logos of the Arab Bank

After 2 days of deliberation by a jury, following a 5 week trial, and 10 years of legal battles, Jordan’s Arab Bank has been found guilty of helping Hamas financially.

The flag of ISIS

ISIS urged all Muslims to kill all non-Muslims, and referred to Kerry as an ‘uncircumcised old Geezer.’

The ISIS spokesman issued a statement that said the coalition led by the United States against ISIS was the “final campaign of the crusaders.”

A Muslim social media campaign against ISIS was begun by the British Active Change Foundation.

British Muslims launch social media campaign against ISIS, called #NotInMyName.

A seniors’ tennis team from New York is going to a court of law to keep from playing a tournament on Shabbat.

The cease-fire does not mean Hamas can’t prepare to end it.

“How can you separate politics and health? The two go hand-in-hand.” – editor of Lancet medical journal.

7:30 pm From the Ginot Shomron CTU Commander: Official Announcement regarding the security incident in Ginot Shomron today: There was a reported sighting of a suspect in Ginot this afternoon. The suspect was most probably a teenager with a paintball rifle. There were no injuries, no arrests and there are no suspects. The entire incident […]

For the record, Jewish law allows you only to hear on shofar at a time on Rosh HaShanah.

Add BDS to the long list of those who never will forgive Obama.

The Mossad international intelligence agency has launched a new website to recruit potentially qualified candidates.

Australian Prime Minister Tony Abbott announces that any citizen who went abroad to fight with jihad groups may as well stay there.

Kurdish fighters in Syria say they have stopped the advance of ISIS towards the town of Kobani near the Turkish border.

The US has allegedly sent military aid and intelligence to the Lebanese Hezbollah terrorist organization, according to the NYT.

ISIS terrorists are preparing to defend captured territory and using human shields to do it, but they’re also living the high life with chocolate.

For the first time, Hezbollah has used unmanned aerial vehicles (UAVs) to bomb its enemies in Syria.

More Articles from Jewish Press Staff
Hamas' leader Ismail Haniyeh and then-Turkish Prime Minister Erdogan.

Turkey is not going to be signing any deals for Israeli natural gas exports any time soon, says Turkish Energy Minister Taner Yildiz.

The new face, so to speak, of the Temple Mount.

Netanyahu said that since the Jordanians opposed the bridge, “Of course we agreed.” Of course.

The Israeli navy is about to receive its fourth submarine and the first of three nuclear-capable subs purchased from Germany.

Israeli searchers for missing Lakewood, New Jersey yeshiva student Aaron Sofer have found some of his personal belongs near a trail, his last known location, but fears are growing that the 23-year-old youth has been kidnapped and/or murdered. Police and a dog unit have tracked the Jerusalem Forest area where he was last seen on […]

Chabad rabbis say middle-of-the-night jolt makes him understand better what Israelis are going through in the war.

Neither, rain, nor sleet, snow nor Hamas can keep Apple co-founder Wozniak from biting into Israel.

One advantage of erosion of stones at the Kotel is more cracks for people to place prayer notes.

Printed from: http://www.jewishpress.com/news/breaking-news/former-5t-av-synagogue-president-returns-410-million-to-madoff-victims/2012/06/26/

Scan this QR code to visit this page online: