New York Attorney General Eric Schneiderman said that money manager Ezra Merkin has agreed to pay $410 million to settle a lawsuit brought by New York state that accused Merkin of secretly steering client money to Ponzi schemer Bernard Madoff, Reuters reported yesterday. Under the agreement, Merkin will pay $405 million to compensate investors over three years, Schneiderman's office said. The other $5 million will go to the state. Investors may receive over 40 percent of their losses, Schneiderman's office said, and those who did not know Merkin was sending their money to Madoff will get more. The settlement does not resolve a separate case brought against Merkin by Irving Picard, the trustee seeking money for all of Madoff's victims. Picard is trying to claw back $500 million that Merkin and his funds withdrew from accounts with Madoff.
