A New York state judge on Tuesday confirmed a $1.5 million arbitration award in favor of an investor in Ascot Partners, which was set up by hedge fund operator J. Ezra Merkin, who had turned over management of the fund to convicted Ponzi-schemer Bernard L. Madoff.
David Bamberger of Bamberger and Brickman, who represents the investor, Noel M. Weiderhorn, said that to his knowledge Manhattan Supreme Court Justice Richard B. Lowe’s affirmance of the 2-1 arbitration award is the first to hold one of Madoff’s “feeder funds” legally responsible for investor losses.
