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NY Investigates Madoff Chum in Charity Losses

Nonprofits say Merkin invested millions without their knowledge

By Jason Farago, Newser Staff

Posted Jan 15, 2009 6:44 AM CST

(Newser) – New York investigators widened their inquiry into Bernie Madoff's Ponzi scheme yesterday, as claims emerged that a middleman may have defrauded charities of millions of dollars. Money manager Ezra Merkin allegedly invested the money of 15 nonprofits in Madoff funds without their knowledge, reports the New York Daily News. New York AG Andrew Cuomo has now subpoenaed Merkin, the first figure besides Madoff to be targeted by authorities.

Merkin is alleged to have served on the boards of several nonprofits while also offering advice on investment strategies. The victims include Carnegie Hall and New York University, as well as Jewish charities and organizations such as Yeshiva University and the United Jewish Appeal Foundation of New York. Cuomo has also subpoenaed three funds that Merkin managed, which all received millions in fees for managing the charities' investments.

Ezra Merkin, pictured at right with Ariel Sharon and Ehud Olmert of Israel, had been subpoenaed in connection with millions of dollars lost by charities in connection with the Madoff Ponzi scheme. (AP Photo/Eliana Aponte, Pool/File)

Besieged money manager Bernard Madoff arrives at Federal Court in New York, Wednesday, Jan. 14, 2009. (AP Photo/Stuart Ramson)

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NY Investigates Madoff Chum in Charity Losses

Nonprofits say Merkin invested millions without their knowledge

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Trustee Wants $30M More From Madoffs

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Madoff Has $9B Secret Stash: Fellow Inmate

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Prisoner Madoff: 'F*** My Victims'

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Madoff Colleague Found Dead in Swimming Pool

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NY Investigates Madoff Chum in Charity Losses

Nonprofits say Merkin invested millions without their knowledge

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OTHER STORIES ON OUR RADAR

fraud • charity • nonprofit • New York University • Ponzi scheme • Carnegie Hall • Yeshiva University • Bernard Madoff • Ezra Merkin

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Trustee Wants $30M More From Madoffs

Irving Picard sues, again, for money

Madoff Has $9B Secret Stash: Fellow Inmate

Former partner knows where it is, may cut deal

Prisoner Madoff: 'F*** My Victims'

Ponzi schemer serving 150-year sentence becomes celeb in prison

Madoff Colleague Found Dead in Swimming Pool

Jeffry Picower faced Ponzi scheme lawsuit

Madoff Trustee Sues Relatives for Not 'Doing Their Jobs'

$199M suit spreads blame to firm's execs

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Newser By Users

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