The fallen financier, a scion of one of the city’s most prominent families, raised a total of $4.4 billion over his nearly 20-year career as a money manager. About half of that went to Mr. Madoff, as investors flocked to the man who seemed to possess a golden touch. In turn, Mr. Merkin received $688 million in management and incentive fees, according to a court document filed late Monday by the New York attorney general’s office, which in April sued Mr. Merkin for defrauding investors of $2.4 billion.
The figures provide the most detailed look yet into Mr. Merkin’s fortune. They illustrate how he could afford to assemble one of the world’s finest collections of Mark Rothko paintings and acquire a two-floor apartment at 740 Park Ave. In June, Mr. Merkin agreed to sell the core of his art collection for $191 million in order to partially repay cheated investors.
Mr. Merkin didn’t actually manage any money himself in exchange for the hefty fees he charged, according to the attorney general’s office. His annual fee was usually 1% of the assets and 20% of the investment gains. In 2003, he increased the management fee to 1.5% for one of his funds, from which he funneled money almost exclusively to Mr. Madoff.
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