A Fraud Within the Fraud

People, if you’re looking for the personification of chutzpah, we have a winner!  He is J. Ezra Merkin, hedge fund manager.

New York Attorney General Eric Schneiderman announced that Merkin will pay $405 million to his former investors to settle a civil fraud suit.  When Bernie Madoff’s  pyramid crumbled to dust in December 2008, Merkin’s funds lost about $1.2 billion.

But here’s the kicker — Merkin made hundreds of millions in management fees without actually doing any research or analysis for his clients.  All he did was take their money and pass it along to Madoff to “invest.”

Nice work if you can get it!  Merkin must have made more per hour than anyone in history.

Which proves it’s not what you know, it’s who you know…

 

 

 

2 comments on “A Fraud Within the Fraud

  1. Always has been, always will be.
    Do you think greed has been erased from the human genome?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s