If there was ever a sign that something was amiss in the world of money management, it’s this:
Some money managers simply send the money they collect from their suave marketing efforts to other money managers. Sometimes their clients don’t even know.
The case of J. Ezra Merkin – the former chairman of GMAC who ran his own funds – is a wakeup call to anyone who blindly hands over millions to someone based on trust.
New York Attorney General Andrew Cuomo alleges Merkin simply took the money from his investors, gave it to Bernie Madoff, sat back and collected enormous fees from the fictious profits Madoff reported.
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