ALBANY, N.Y. – A settlement announced Sunday will bring $405 million to victims of Bernard Madoff’s investment scam, the state attorney general said.
The clients of hedge fund manager J. Ezra Merkin will receive $405 million, and New York state will get $5 million to cover the cost of the settlement worked out by Attorney General Eric Schneiderman. The victims include New York Law School, Bard College, Harlem Children’s Zone, Homes for the Homeless and the Metropolitan Council on Jewish Poverty.
Schneiderman called the agreement “a victory for justice and accountability.”
“Many New Yorkers entrusted their investments to Mr. Merkin, who then steered the money to Madoff while receiving millions of dollars in management and incentive fees,” Schneiderman said. “By holding Mr. Merkin accountable, this settlement will help bring justice for the people and institutions that lost millions of dollars.”
Merkin’s attorney, Andrew J. Levander, didn’t immediately respond to a request for comment Sunday.
Merkin had managed investments for hundreds of investors, many of which are New York residents and charitable organizations. Many of them requested not to be identified.
Most investors will get more than 40 percent of their losses, but only up to $5 million. Those who lost more could see additional payments, depending on the number of investors who seek reimbursement.