New York (HedgeCo.Net) – New York University is the latest victim in Bernard Madoff’s web of lies, claiming it lost $24 million in a fund of fund that invested with the infamous Ponzi schemer. 

According to a complaint filed Christmas Eve in a Manhattan court, J. Esra Merkin invested NYU’s money with Madoff through two of his funds, Gabriel Capital LP and Ariel Fund Ltd., without telling investors and without performing proper due diligence.

Gabriel Capital, which manages approximately $1.5 billion, is planning to liquidate in light of the Madoff losses and because the fund posted losses this year of around 39 percent.    A Manhattan judge has barred Merken from liquidated Ariel until a hearing set for January 6^th.  NYU said it had about $94 million invested in the Ariel Fund.

NYU spokesman John Beckham explained that Merkin “was explicitly told this was not a proper investment vehicle,” when he brought up Madoff.  According to NYU however, Merkin had already invested the money with him.

Madoff was arrested on December 11^th after an alleged confession to his sons in which he admitted that his firm was one “giant Ponzi scheme.”  It is estimated that investors will lose a total of $50 billion, making this the largest Wall Street scam in history.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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New York (HedgeCo.Net) – Investors in the hedge fund Fairfield Greenwich Group have sued the company after about $7.5 billion in potential losses stemming from ties to Bernard Madoff. 

The investors claimed that Fairfield sustained “avoidable losses,” by not practicing proper due diligence and failing to manage their investments properly.  The lawsuit, filed by Pasha and Julia Anwar in New York State Supreme Court on Friday, is one of many attempts lately to salvage some of the estimated $50 billion lost by Madoff through his infamous Ponzi scheme.  The Anwars are residents of Illinois and had an interest in Greenwich Sentry LP. 

Massachusetts Mutual Life Insurance is also facing a scrutiny from angry investors.  On Monday, Arthur E. Lange of Connecticut and Arthur C. Lange of New York filed a lawsuit in the Southern District of New York, claiming that the company “breached their fiduciary duties by failing to conduct adequate due diligence and/or numerous red flags,” regarding their investments with Madoff.

Massachusetts Mutual has denied the claims and plans to “vigorously defend itself,” according to a spokesman for the company. 

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com

Tags: accredited-investors, anwar, bernard madoff, fairfield greenwich group, fiduciary duties, hedgeco, massachusetts mutual life insurance, mutual-life-insurance, pasha, ponzi scheme, proper due diligence, red-flags, salvage, scrutiny, sentry, sister-sites, southern district of new york, state supreme court