Orloff Lowenbach Stifelman & Siegel P.A.

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OLSS Scores $13.5 Million Arbitration Victory For Sandalwood Securities, Inc. Against J. Ezra Merkin

A recent Judgment has been entered by the New York Supreme Court in favor of two funds of funds, Sandalwood Debt Fund A, L.P. and Sandalwood Debt Fund B, L.P., against J. Ezra Merkin, the general partner of a feeder fund (Gabriel Capital, L.P.) that did business with Bernard Madoff, in amounts totaling approximately $13.5 million.

The Judgment followed an Opinion and Order of the Hon. Richard B. Lowe, III, confirming an Arbitration Award in favor of Sandalwood and against Mr. Merkin based upon allegations that the Sandalwood parties had been induced to make and retain their investments in Gabriel on the basis of misrepresentations and non-disclosures with respect to the fact that a portion of the capital of Gabriel had been placed by Merkin with Bernard L. Madoff.

The aforesaid Award and Judgment is believed to be the largest thus far entered on behalf of any investor against Mr. Merkin, who also managed as general partner other feeder funds that dealt with Mr. Madoff.

Sandalwood was and continues to be represented in the matter by Laurence B. Orloff of Orloff, Lowenbach, Stifelman & Siegel, P.A., Roseland, New Jersey, and Lewis D. Lowenfels of Tolins & Lowenfels, New York, New York.