Wall Street fraud threatens Jewish philanthropy
The arrest of Wall Street trader Bernard L. Madoff, who federal agents say defrauded investors of an estimated $50 billion, has had immediate consequences in the Jewish philanthropic world. Madoff was arrested for allegedly defrauding his clients of $50 billion in a massive pyramid scheme over the course of several years.
Madoff resigned from Yeshiva University, where he served as the chairman of the Sy Syms School of Business and treasurer of the board of trustees. Madoff and his wife, Ruth, had also endowed a “Presidential Fellowship” at the university.
Boston-based Robert I. Lappin Charitable Foundation, which had the bulk of its money invested with Bernard L. Madoff Investment Securities, closed its doors and terminated its seven staff members. A 16-year-old charity, the organization’s stated goal had been “reversing the trend of assimilation and intermarriage.”
Madoff also made charitable donations to other Jewish organizations, including the 92nd Street Y and Gift of Life, a Jewish bone marrow registry and cord blood bank. In addition, the Madoffs were such significant contributors to UJA-Federation of New York.
Story courtesy of www.forward.comÂ