New York Judge Richard B. Lowe III has denied J. Ezra Merkin’s motion to dismiss his civil fraud case related to the Madoff fraud. Merkin’s lawyers argued that the case should be dismissed because the complaint did not meet the requirements under the Martin Act. However, the judge ruled last week that the court was obliged to presume the accuracy of Attorney General Andrew M. Cuomo’s accusations, according to The New York Times.
The New York Times reports that the hedge fund manager and former GMAC Financial Services chairman is accused of of deceptive, negligent and reckless conduct in his financial relationship with Bernard Madoff. Cuomo alleges that Merkin, acting as an investment adviser, gave all of his client’s money to Madoff without adequate supervision or investigation.
