Sunday, June 24, 2012

Merkin settles Madoff-related suit

Money manager Ezra Merkin has agreed to pay $410 million to settle a lawsuit brought by the New York attorney general that accused Merkin of steering client money to Ponzi schemer Bernard Madoff, a person familiar with the settlement told Reuters on Sunday.

Justice Richard Lowe of New York state court signed off on the settlement on Friday, the person said, and it is expected to be announced on Monday. The person asked not to be identified because of not being authorized to talk about the matter.  Under the agreement, Merkin will pay $405 million to compensate investors over three years, the person said. The other $5 million will go to the state.

The settlement does not resolve a separate case brought against Merkin by Irving Picard, the trustee seeking money for all of Madoff's victims. Picard is trying to claw back $500 million that Merkin and his funds withdrew from accounts with Madoff…

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