New York Attorney General Andrew Cuomo sent subpoenas to three funds run by J. Ezra Merkin and to 15 nonprofit entities for an alleged fraud related to the $50 billion scandal of Bernard Madoff.
The legal order sent to Mr. Merkin and his Gabriel Capital Corp., Ariel Fund Ltd. and Ascot Partners LP are in probe of an alleged charity fraud, according to a person familiar with the probe, the WSJ, AP and Bloomberg reported Thursday.
The non profit entities are not targets of the probe however attorney Cuomo is seeking for information.
A lawyer for Mr. Merkin said his client and family were among the largest victims in the Madoff case. Mr. Merkin and his funds are facing lawsuits from investors, according to the WSJ.