Ezra Merkin’s Gabriel Capital To Close Shop On Ties To Madoff Firm
Ezra Merkin’s Gabriel Capital LP said it will dissolve after investing most of its hedge fund's assets with alleged fraudster Bernard Madoff.
GMAC Chairman, Ezra Merkin sent a letter to investors yesterday that dissolving the fund was the fund’s "only realistic option" after the fund lost 39% through November 30th, including Madoff-related investments. Merkin said that dissolving the fund will take several years to complete.
Additionally, NYU Law School filed an investor lawsuit against J. Ezra Merkin, one of his funds and its auditor on Tuesday over investments made through Bernard L. Madoff Investment Securities LLC.
The lawsuit alleges recklessness, gross negligence and breach of fiduciary duties by Merkin, who also heads money- management firm Gabriel Partners; the fund, Ascot Partners LP; and its auditor, BDO Seidman LLP.
The complaint alleges Merkin abdicated his responsibilities and duties as Ascot's general partner and manager in entrusting substantially all of its assets - $1.8 billion - to the Madoff firm and that Seidman failed to recognize "red flags" at the Madoff firm.
Bernie Madoff is a former chairman of the Nasdaq Stock Market and a force in Wall Street trading for nearly 50 years.
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Merkin Connections to TARP and Cerberus
I started lookingat Gabriel funds assets on edgar. http://www.sec.gov/Archives/edgar/data/1000242/000089457908000360/gcc13fhr111308.txt I found it says"List of Other Included Managers:STEPHEN FEINBERG " So I look him up and see he is the main owner at Cerberus fund (Chrysler, Mervins, Air Canada, GMAC) http://en.wikipedia.org/wiki/Cerberus So Madoff's fund found investors though the top people at Cerberus, the central figures in other financial scandals? Im just looking on the internet and researching but it seems this fund is costing taxpayers a lot of money!
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merkin connections to GMAC
philopatris on Dec 26, 2008 08:35 PMMerkin is chairman of GMAC Financial. Cerberus supplies three more of the directors, Mark Neporent, Lenard Tessler, and Frank Bruno. Must feel great to be involved with GMAC these days....