A New York judge yesterday cleared the way for a $410 million state settlement with disgraced moneyman Ezra Merkin — who ran a Bernie Madoff feeder fund.
In green-lighting the deal hammered out by Attorney General Eric Schneiderman — which will see the monies go to compensate victims of the $20 billion Madoff Ponzi scheme — Manhattan federal court Judge Jed Rakoff took time to chide Madoff trustee Irving Picard, who tried to block the AG’s deal.
“The trustee … having for more than three years issued empty threats to seek to halt the Attorney General’s suit, has lost his right to complain,” Rakoff said in his 26-page ruling.
Rakoff also blasted Picard on the “merits” of his legal wrangling, saying that the trustee’s “bluster proves to be without substance.”
Schneiderman yesterday crowed over the victory, claiming “justice” for the investors — including Yeshiva University and NYU — which lost money investing in Merkin.
“This ruling is a victory for justice and accountability,” said Schneiderman in a statement.
Then-AG Andrew Cuomo sued Merkin in 2009 — accusing the fallen hedgie of hiding from investors the fact that he was funneling much of their money to Madoff.
Cuomo famously called Merkin, who owns an 18-room duplex at posh 740 Park Ave., a “glorified mailbox” for Madoff.
Picard knew about the AG’s legal battle but sat on the sidelines until after the AG and Merkin announced their settlement last year.
Picard plans to appeal Rakoff’s ruling.