Receiver Bart M. Schwartz’s Total Distributions Exceed $1.4 Billion; $300 Million More Than Value at Receivership Inception
New York, NY – November 18, 2015 – Justice Richard B. Lowe, III, of the New York State Supreme Court in Manhattan, has today approved a $235 million distribution request proposed by Bart M. Schwartz, Court appointed Receiver for Gabriel Capital, LP and Ariel Fund, Ltd, two funds formerly run by J. Ezra Merkin that suffered losses due to the Madoff fraud. This distribution is a direct result of Mr. Schwartz’s recent settlement of the Funds’ claims against the Madoff Estate with its Trustee Irving H. Picard.
This brings the total distributions by Mr. Schwartz to the Funds’ investors to over $1.4 billion, approximately $300 million greater than the value of the Funds at the time of Mr. Schwartz’s appointment as Receiver by the Court in June, 2009.
“Under the stewardship of Justice Lowe and working closely with the Office of the New York Attorney General’s office, we have been able to achieve these remarkable results,” said Mr. Schwartz. “This is an outstanding success for the victimized investors.”
This most recent distribution is the tenth interim payment approved by Justice Lowe. The Funds continue to hold an investment portfolio with a combined estimated value of approximately $600 million.
Added Robert P. Rittereiser, who manages the two funds with Mr. Schwartz: “Assuming a successful sale of those assets, which we will continue to manage in an orderly manner, the total distribution to the investors is expected to be approximately $2 billion or $200 million more than the estimated value of the Funds in November 2008 when the fictitious Madoff gains were included in the valuation.”
The expected $2 billion distribution includes the settlement received by the Funds from Ezra Merkin in the lawsuit brought by the New York State Attorney General. Mr. Schwartz was appointed by Justice Lowe pursuant to that lawsuit.
“On behalf of the investors, I want to express my appreciation to the Court, the New York Attorney General’s office, my colleagues Robert P. Rittereiser and Michael D. Klett, and the Reed Smith, LLP legal team of James McCarroll and Jordan Siev. I also am very grateful for the advice and participation of the members of The Investor Committee,” said Mr. Schwartz.
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