Madoff Trustee Sues New York to Stop Merkin Settlement
Irving Picard, the trustee liquidating the estate of convicted Ponzi scheme mastermind Bernard Madoff, sued New York Attorney General Eric Schneiderman in Manhattan federal court to stop a settlement with former Madoff investor Ezra Merkin, Bloomberg News reported today. New York announced June 25 that it settled a lawsuit for $410 million with J. Ezra Merkin over claims that Merkin funds secretly placed client money with Bernard L. Madoff. The agreement provides $405 million to compensate investors and $5 million for the state, according to a statement yesterday by the office of New York Attorney General Eric Schneiderman. In the case, filed in 2009 by Schneiderman's predecessor, Andrew Cuomo, the state claimed Merkin steered assets to Madoff and concealed Madoff's role.