Documents from New York University’s lawsuit against former GMAC non-executive Chairman Ezra Merkin and the hedge fund, Gabriel Capital LP, which Merkin is the general partner, were made public last week revealing that he was warned regarding the credibility of the returns from investments with Bernard Madoff. Merkin through Gabriel Capital invested $24 million of the NYU endowment with Madoff according to the New York Times.
I don’t know if the fact that the allegation about Merkin’s knowledge comes from a convicted felon detracts from the case or simply provides an added level of irony to this sordid episode but one thing is for sure, there will be many more lawsuits and there probably should be.
