J. Ezra Merkin, Accused Middleman for Bernard Madoff Sued by
New York v. J. Ezra Merkin and Gabriel Capital
An accused middleman and fund manager was sued by New York Attorney General Andrew Cuomo's office for allegedly failing to get permission from his individual and non-profit clients that he would be investing $2.4 billion of their assets with now convicted and admitted Ponzi scheme investment manager Bernard Madoff.
He is charged with violating New York's Martin Act, a state securities law governing fraudulent practices regarding stocks, bonds, and other securities.
Merkin is also accused of commingling his personal funds, including management fees, with the funds of his management company, Gabriel Capital Corporation ("GCC"). Merkin is accused of using GCC funds to make purchases for his personal benefit, including over $91 million of artwork for his Park Avenue apartment.
You can read the New York Attorney General's lawsuit against J. Ezra Merkin and Gabriel Capital Corp. below: