The victims of Bernard Madoff’s infamous Ponzi Scheme are now set to receive US$405 million in a recent settlement.
Clients of hedge fund manager J. Ezra Merkin will be rewarded $405 million, while New York state will receive $5 million to cover the costs of of the litigation process.
Merkin had hundreds of investors in his firm. He managed over $4 billion in assets. Some from private investors, some from charitable groups. Merkin invested over $2 billion with Madoff, who used the funds to run a Ponzi Scheme.
In his testimony, Merkin admitted that he knew many people who were suspicious of the returns that Madoff was claiming. Attorney General Eric Schneiderman said Merkin concealed Madoff’s role through misleading quarterly reports.
The settlement is expected to return upwards of 40% of client money lost through the scam, but can receive no more than $5 million each. Clients who lost more may see more, depending on how many investors seek to have their lost funds returned.
Gormiley, Michael, Albany NY, AP. Madoff victims to get US$405 million. The China Post. June 26, 2012. p3.