NY Law School sues investment company for losses

wabc

By abc7NY

Wednesday, December 17, 2008

NEW YORK The lawsuit filed Tuesday in U.S. District Court in Manhattan blamed Ascot Partners L.P., J. Ezra Merkin and Ascot's independent auditor for failing to spot corruption.

Merkin is the chairman of GMAC Financial Services, the financing subsidiary of General Motors Corp.

Andrew Levander, a lawyer for Merkin, said: "Mr. Merkin and his family are personally among the largest victims of the massive crime confessed by Bernard L. Madoff. Like the other victims and the entire financial community, Mr. Merkin is shocked by these events. He intends to defend this lawsuit vigorously while seeking redress for himself and his investors from whomever perpetrated this fraud."

A spokesman for Ascot did not immediately return a telephone message.

New York Law School said it invested $3 million with Ascot in 2006. It said the investment is now worthless due to the "wrongful conduct" of the defendants.

Madoff was charged with securities fraud last week after authorities say he told his family his investment strategy was a giant Ponzi scheme that lost $50 billion.

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