A peek into the legal future for the Berniverse.

Merkin was served with a civil fraud complaint on April 6. The charges allege that he handed his clients' money over to Madoff without their knowledge.

What's Next:

Earlier this month, Merkin's attorneys asked the courts to drop the suit. Merkin has maintained that his clients were made aware of Madoff's involvement with their investments. His attorneys asked for a hearing on their dismissal request for July 17. That's the same day he must respond to complaints filed by Irving Picard, a court-appointed trustee assigned to assess losses and dole out funds to Madoff victims, according to the trustee's first interim report on the Madoff liquidation process.

So the big question is whether Merkin knew about Madoff's swindling. Merkin was a longtime friend and associate and had reportedly been warned about Madoff's unusually high returns by Jack Nash, former chairman of Oppenheimer & Co., and former Merkin employee Victor Teicher (who, incidentally, was found guilty of insider trading in 1998).

For now, Merkin can focus on redecorating his home, what with his collection of Rothko paintings being sold to compensate his former clients. I have a few good ideas.

Walter Noel