from The New York Times:

Judge Refuses to Dismiss Fraud Case Against Merkin

A state court judge has refused to dismiss civil fraud charges filed by Attorney General Andrew M. Cuomo of New York against a hedge fund manager whose clients, including Yeshiva University and New York University, lost more than $1 billion in Bernard L. Madoff’s Ponzi scheme.

… In the ruling, dated Feb. 8 but made public on Wednesday, Judge Lowe denied all of Mr. Merkin’s arguments for dismissal, noting that the court was obliged at this stage of the case to presume the accuracy of Mr. Cuomo’s accusations.