By James Clark | email
LUBBOCK, TX (KCBD) - Here's a quick update on a story NewsChannel 11 broke Wednesday night. On Friday, Texas Tech took the first step in filing a lawsuit related to the billions of dollars New York investor Bernard Madoff lost while running a ponzie scheme. Madoff pleaded guilty back on March 12th and the judge ordered him locked up even before official sentencing.
Texas Tech did not intentionally invest with Madoff. Texas Tech instead invested with a man named Ezra Merkin. Merkin in turn put money into the Madoff fund. Texas Tech says only $4 million or $5 million is at risk. That brings us back to Friday's decision. The Texas Tech board of regents approved hiring a lawyer to possibly file a lawsuit against Merkin and/or a St. Louis-based investment firm. Merkin has said in the past that a similar lawsuit by New York University is "without merit."
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