For example, J. Ezra Merkin, chairman of GMAC, also ran the Ascot fund, which charged clients an annual 1.5% management fee, while giving all their money to Madoff. Yet in its official documents, Ascot claimed to be using Madoff only as a custodian and clearing agent, and to be doing diligent stock-picking. Merkin, in other words, is in big trouble, like GMAC.

The Best of Llewellyn H. Rockwell, Jr.