Former GMAC Financial Services Chairman Subpoenaed in Madoff Scandal

Hmm. This is rather curious. This fellow J. Ezra Merkin claim to have taken quite the financial bath thanks to Democrat sugar daddy Bernie Madoff, but here we have New York AG Andrew Cuomo issuing a flurry of subpoenas for his records.

New York Attorney General Andrew Cuomo has issued subpoenas to former GMAC Financial Services Chairman J. Ezra Merkin, three of his funds and 15 nonprofits in his probe of alleged frauds on charities in the Bernard Madoff scandal.

The attorney general's office is seeking information from Mr. Merkin and his Gabriel Capital Corp., Ariel Fund Ltd. and Ascot Partners LP.

Mr. Cuomo also is seeking on information from 15 nonprofits, but the charities aren't targets of the probe.

The New York Daily News reported the subpoenas in its editions on Thursday.

At a press event Tuesday, Mr. Cuomo said his office was investigating frauds on charities and people who may have defrauded charities in the Madoff case.

Mr. Merkin has been under fire since it became public that he entrusted billions of dollars of his investors' funds to Mr. Madoff, who is facing criminal charges in connection with an alleged massive Ponzi scheme.

A lawyer for Mr. Merkin has previously said Mr. Merkin and his family were among the largest victims in the Madoff case and Mr. Merkin is "shocked" by the turn of events. The lawyer didn't immediately return a phone call seeking comment Thursday.

As we have noted previously, Madoff was very generous to the Democrats by contributing vast amounts to the DSCC and to New York Democrat Senator Charles Schumer, who has been unusually quiet when it comes to the Madoff swindle.

Well, what do you know? Schumer also received six contributions from Merkin over the years. Very interesting.

Although in fairness we'll note Merkin was much more bipartisan in his contribution overs the years than was Madoff, who gave overwhelmingly to Democrats. Still, it's curious that we find Schumer as receiving quite a bit of money from both Madoff and now Merkin. Does this imply any guilt on his part? Of course not. But we must apply the same standards of fairness that Schumer applies to Republicans and call for an investigation here and have Schumer testify as to what he knew and when he knew it.

All out of fairness, transparency and openness, of course.

It would also be nice if someone in the media actually looked into whether Schumer has actually returned Madoff's contributions, as he claimed he would.

The $100,000 Madoff donated to the Democratic Senatorial Campaign Committee, run by Schumer until last month, should also be returned, but "that is their decision," Schumer said.

Let's just imagine as a comparison if a Republican received $100,000 from, say, Kenneth Lay back in the late 1990s. Do you suppose they'd get away with such a mealy-mouthed explanation?

You know the answer.