New York Attorney General sues Gabriel Capital citing $2.4 billion fraud

New York AG, Cuomo, files $2.4 billion securities fraud suit naming Ezra Merkin.

New York, NY (–New York Attorney General Andrew Cuomo filed a lawsuit on Wednesday in New York state Supreme Court in Manhattan naming financier Ezra Merkin and his Gabriel Capital Corporation. Court documents claim Merkin secretly placed $2.4 billion, of Gabriel Capital client funds, with Bernard Madoff who used the money in the largest Ponzi scheme in history.

The legal complaint, filed by AG Cuomo, alleges Merkin gave the assets to Madoff for $470 million in securities investment fees. Many of the defrauded investors included prominent charities plus investors with Merkin’s other entities including Ascot Fund Ltd., Ascot Partners LP, Ascot, and Ariel Fund Ltd. Consumers who invested with Merkin were unaware their money was with Bernard Madoff until after his arrest. The lawsuit seeks payment of damages, disgorgement of all fees, restitution and other equitable relief. news for New York securities fraud litigators.

About the Author Justice Seeker

Heather L. Ryan, R.N., C.L.N.C- Heather Ryan is a Certified Legal Nurse Consultant with 15 years of experience in the health care industry. Her expertise in reviewing medical records and assisting lawyers with the determination as to whether legal action should be taken provides an invaluable asset to the newsroom. Medical-malpractice, products liability, personal injury and workers’ compensation are some of the recent areas of litigation Ms. Ryan has focused her efforts on. A member of the Florida Justice Association, Heather maintains a long list of certifications and credentials to support her areas of expertise and stays up-to-date with her clinical knowledge working as an emergency room/trauma nurse, at a Level 1, Adult/Pediatric trauma and teaching institution in South Florida.