Jacob Ezra Merkin (born April 19, 1953)[1] is an American investor, hedge fund manager and philanthropist.
He navigated a series of lawsuits without a finding of fraud or knowledge of the scheme, but agreed to repay any fees earned from the investment in Madoff historically.
In 1995, he paid $11 million for an 18-room duplex formerly owned by Ron Perelman, a member of his synagogue, at 740 Park Avenue, sometimes referred to as "the world's richest apartment Building.
Merkin also owns a home in Atlantic Beach, New York, valued at $1.7 million, and a property in Eagle County, Colorado, worth $506,000.
[10] In 2005, Cerberus and Gabriel bought a 9.9% combined interest in Bank Leumi, but in April 2009, decided to sell to boost liquidity due to their substantial financial losses in 2008.
[11] Merkin managed Ascot Partners LP, a hedge fund which was valued at $1.8 billion prior to the collapse of Bernard L. Madoff Investment Securities LLC.
However, in January 2009, Merkin had to resign from his chairmanship as a condition of the U.S. Federal Reserve granting GMAC bank holding company status, so it could obtain access to bailout money.
In August 1998, Merkin again hired Teicher to manage about $1 billion as an independent operator,[2] paying him $1 million a year plus incentives.
In January 1995, Merkin took over Teicher's staff, put Gabriel Capital's name on the door, and hired Nathan Leight to manage the money.
[17] After Madoff's arrest, Teicher immediately sent some emails to Merkin: You, however, took a brilliant career and actively, willingly, wiped your ass with it when it was obvious that you (knew what you) were doing.
[18]The Madoff news is hilarious;hope you negotiate out of this mess as well as possible....Unfortunately, you've paid a big price for a lesson on the cost of being greedy.
[35] As of May 18, 2009, Merkin's control of Ascot, Gabriel and Ariel hedge funds were placed into receivership for liquidation by Guidepost Partners.
[37] On June 22, 2012, Merkin agreed to pay back $405 million to investors in his hedge funds without any finding of fraud on his part.
[38] Picard, however, sued in bankruptcy court to stop the settlement, saying it obstructed his own effort to obtain $500 million from Merkin and his funds for other investors.