Legal News

Cuomo Subpoenas J. Ezra Merkin, Funds and Nonprofits

By Dan Slater

In his probe of alleged frauds on charities in the Madoff scandal, NY Attorney General Andrew Cuomo has issued subpoenas to former GMAC Financial Services Chairman J. Ezra Merkin, three of his funds and 15 nonprofits (which aren’t targets of the probe).

Ehud Olmert, center, stands between former Israeli Prime Minister Ariel Sharon, left, and Ezra Merkin, managing partner of Gabriel Capital Group as the sale of Israel’s Leumi Bank to the U.S. investment firm is completed, Jan. 4, 2006. (AP/Eliana Aponte)

The AG’s office is seeking info from Merkin and his Gabriel Capital Corp., Ariel Fund Ltd. and Ascot Partners LP. Here are reports from the New York Daily News and the WSJ.

Does the move herald a turf battle? Not necessarily. The U.S. attorney’s office seems mostly interested in the alleged fraud concerning Bernie Madoff and his operations. Merkin is a ring removed: he’s been under fire since it became public that he entrusted billions of dollars of his investors’ funds to Madoff. Both New York Law School and New York University have filed suits against him.

A lawyer for Merkin, Dechert’s Andy Levander, has previously said Merkin and his family were among the largest victims in the Madoff case and Merkin is “shocked” by the turn of events. Levander didn’t immediately return the WSJ’s call seeking comment.

Full post as published by Law Blog - WSJ.com on January 15, 2009 (boomark / email).