J. Ezra Merkin, an investment manager who "enjoyed unusually intimate access" to Bernard L. Madoff, should hand back about $558 million of "non-existent principal" he withdrew from Bernard L. Madoff Investment Securities before its collapse, according to a suit brought Thursday by Irving H. Picard, the court-appointed trustee for the liquidation of Madoff's firm. In the 34-page complaint Picard says that Merkin, the former GMAC chair, "knew or should have known" that Madoff's investment advisory business was a fraud.
Madoff Bankruptcy Trustee Seeks $500 Million Clawback
New York Law Journal
May 8, 2009