web analytics
October 21, 2014 / 27 Tishri, 5775
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
Steve Emerson, author, journalist and terrorism expert.
Haaretz Smears American Terrorism Expert with Political Hit Job
Latest News Stories
Steve Emerson, author, journalist and terrorism expert.

Haaretz smears U.S. terrorism expert for being a Republican and friend of Sheldon Adelson.

Leslie W., 48, and his partner Akiwa H., 56, are charged with having sold more than 88,000 pounds of non-kosher meat for a marked-up price.

RCA Logo

The Rabbinical Council of America said that since the arrest last week of Rabbi Barry Freundel of Washington, DC, it has been working assiduously to address the many challenges that its members and their communities now face.

Agam Luria, from a kibbutz in the Jezreel Valley, was identified as one of the four Israelis killed in the Nepal blizzard.

It was an outright miracle: a tiny teahouse in the pass, and the equivalent of a Sherpa Pony Express to deliver a call for help.

ISIS propaganda video warns “our grandchildren will sell your sons as slaves.”

At least eight civilians were killed in US-led coalition air strikes against ISIS in a Syrian town near Deir el-Zour.

Hezbollah guerrillas are back on Israel’s northern border even though they’re busy in Syria. The question is what they’re planning and when.

Let’s raise funds to send her to Syria where she can put some sense in her head, if it stays attached.

An Israeli and an Arab poll results after the war.

The long ordeal of the Armenian Orphan Rug, held hostage to fears of angering Turkey, has finally ended. Or has it?

Dr. Eli Harari will receive the U.S. National Medal of Technology and Innovation.

New York State Assemblyman Steven Cymbrowitz criticized the decision to not charge the suspect with a hate crime.

Former White House official Ron Klain has been tapped to coordinate the government’s response to the Ebola outbreak.

The mountain trek of a lifetime has ended for Israeli hiker Michal Gili Charkesky, whose body was recovered from the Himalayas.

More Articles from Jewish Press Staff
RCA Logo

The Rabbinical Council of America said that since the arrest last week of Rabbi Barry Freundel of Washington, DC, it has been working assiduously to address the many challenges that its members and their communities now face.

Rare silver coin from period of Bar Kochba showing some of the  four species.

The exhibition includes the largest gold medallion with Judaic symbols known in existence.

The soft-glove approach to campus anti-Zionists is more like a pat on the back.

PM Netanyahu has sent out his Rosh HaShana greeting to Jews around the world.

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

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 […]

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: