More on Madoff feeder drama

We've noted the drama surrounding the many feeder funds that lived off Bernard Madoff. Were they victims, or accomplices? Recall that the state of New York has already charged Ascot Partners, headed by J. Ezra Merkin, of deceiving his clients by "falsely claiming he actively managed their funds," when he was in reality simply investing via Madoff, according to the New York Times. The strategy yielded millions in fees over the years from Madoff.

Merkin has hit back, filing papers that say his investors knew full well where their money was invested. Merkin claims he even arranged for his investors to meet Madoff to conduct their own due diligence. Merkin's Ascot fund placed virtually all of its money with Madoff. His Ariel and Gabriel funds placed less money with the schemer. We will likely see this drama played out in some form with other feeders. 

For more:
- here's the article

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