To: i-node who wrote (442578 ) 12/24/2008 5:40:05 PM From: tejek Respond to of 1577007 Here's another quality manager from the GM family. I bet he one of the corporate jets all to himself. He ran a hedge on the side while acting as chairman of GMAC:NYU Sues Ezra Merkin For Mishandling Funds Related To Madoff Scam December 24, 2008 12:29 PM EST StreetInsider reported last week that New York University Law Schoolsued J. Ezra Merkin, his Gabriel Capital LP fund and Ariel Fund Ltd. over investments with Bernard Madoff that allegedly lost NYU more than $24 million. Ezra Merkin's Gabriel Capital told investors last week it is in the process of liquidating its $1.5 billion hedge fund after incurring substantial losses related to the Madoff scam. The fund is down 39% through November 30th. According to the lawsuit and Bloomberg, NYU had about $94 million invested in Ariel, which operated as a limited partnership with Merkin and Fortis Bank. It is alleged by NYU in the complaint filed yesterday in New York State court that for years Ezra Merkin simply turned over a substantial portion of Ariel's funds to Madoff without notifying or making any disclosures to investors. “Without making disclosures in the quarterly reports to investors, and in the face of an extraordinary number of 'red flags," Merkin stayed mum as to the management of the funds. Madoff clients had about $36 billion with the firm, according to a Bloomberg tally that may include some double counting. Ezra Merkin is chairman of GMAC LLC, the finance arm of General Motors Corp. that is 51% owned by Cerberus Capital Management LLC. The case is New York University v. Ariel Fund Ltd., 08- 08603803, New York State Supreme Court. To stay abreast of all things Madoff, please feel free track Madoff related news items here.streetinsider.com