Jacob Ezra Merkin Settles Lawsuit for $410 Million
Jacob Ezra Merkin has agreed to pay $410 million to settle a civil lawsuit alleging he funneled billions of dollars to convicted financier Bernie Madoff, who ran a Ponzi scheme. Madoff was sentenced to 150 years in prison. The lawsuit alleges Merkin operated one of many feeder funds who pushed investor’s money towards Madoff without their knowledge.
New York Attorney General Eric Schneiderman said the deal was done after three years of litigation. According to the agreement, Merkin will pay $410 million over a three year period. Of the $410 million, $405 million will go to the investors and $5 million will go to New York State. It is estimated some investors may possibly get about 40 percent of their investment back. The investors who were in Merkin’s funds are estimated to have lost over $1.2 billion.
Some of the victims who were in Merkin’s funds include New York Law School, Metropolitan Council on Jewish Poverty, Bard College, Harlem Children’s Zone, and Home for the Homeless. This settlement does not include Irvin Picard’s lawsuit, the Bernie Madoff trustee in charge of getting money for the defrauded investors. Merkin received hundreds of millions of dollars in management fees.
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Lulaine Compere is a writer and research analyst for RD Legal Funding, LLC, a leading provider of lawsuit financing solutions to the legal community and the plaintiffs they serve.