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MADOFF SCANDAL: Hedge fund manager to relinquish control

J. Ezra Merkin, the hedge fund manager who invested billions of dollars of his clients’ money with Wall Street swindler Bernard Madoff, has agreed to relinquish control of his funds to court-appointed trustees.

The attorney general’s office of New York had requested the turnover agreement in connection with its civil fraud lawsuit accusing Merkin of convincing clients he was managing their money when he was actually funneling $2.4 billion to Madoff’s Ponzi scheme. The deal, which was discussed in court Tuesday and was expected to be approved by a judge Thursday, is not a settlement in the case, the attorney general’s office said.

The Associated Press

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