Reuters cites court papers made public yesterday (April 19th), which show that Ezra Merkin - who ran the Gabriel Capital fund manager - claims to have spent a "fair amount of time" discussing Mr Madoff's investment strategies.
The papers relate to a civil case brought by New York University, which invested with Mr Merkin. They were made public following a successful petition filed by the Fox Business Network.
According to the transcripts of Mr Merkin's deposition, he claimed to have performed "lots of due diligence on Mr Madoff's trading strategy - and on the returns and on the levels of volatility".
However, he said he cannot remember a "specific conversation and a specific test sequentially connected".
Mr Merkin was charged with fraud by Mr Cuomo's office on April 6th.
He is not accused of being aware of Mr Madoff's $65 billion Ponzi fraud and his lawyer claims his funds have been victims of the swindle.