New York Attorney General Andrew Cuomo is investigating whether a hedge fund operator who lost big in the Bernard Madoff scandal misled schools and charities about how he invested their money.
A person familiar with the probe said authorities have subpoenaed records from three investment funds run by J. Ezra Merkin, who stepped down last week as chairman of GMAC Financial Services LLC, the financing arm of General Motors Corp
Merkin has also been subpoenaed, said the individual, who spoke on condition of anonymity because of the sensitivity of the investigation. The attorney general has additionally asked 15 nonprofit entities with ties to the financier to turn over records and other information.
Merkin’s lawyer, Andrew Levander, said through a spokesman that his client would “fully cooperate.” (AP)
