Bernie Madoff associate to pay $410 million in compensation

LOS ANGELES — Money manager and Bernard Madoff associate J. Ezra Merkin will pay $410 million to compensate investors after losing more than $1.2 billion of their money to Madoff's Ponzi scheme.

New York Attorney General Eric T. Schneiderman on Monday called the agreement one of the largest of its kind.

Merkin managed four funds — Ariel Fund, Gabriel Capital, Ascot Fund and Ascot Partners. New York officials said he surreptitiously funneled more than $2 billion in assets to Madoff while personally raking in hundreds of millions of dollars in management fees.

More than 10 percent of those assets belonged to charities and nonprofit groups, according to state officials.

Madoff is serving a 150-year sentence in North Carolina after pleading guilty in 2009 to masterminding his extensive Ponzi scheme.

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