Elie Wiesel Foundation for Humanity loses nearly everything in Madoff scheme

[babylonsister]

Wiesel Foundation loses nearly everything in Madoff scheme

Wed Dec 24, 11:36 am ET


WASHINGTON (AFP) – The Elie Wiesel Foundation for Humanity lost more than 15 million dollars -- nearly all of its assets -- in the alleged fraud scheme run by Wall Street baron Bernard Madoff, the fund said Wednesday.

"We are writing to inform you that the Elie Wiesel Foundation for Humanity had 15.2 million dollars under management with Bernard Madoff Investment Securities," said the foundation, which aims to combat anti-Semitism, on its website.

"This represented substantially all of the Foundation's assets," it said.

"We are deeply saddened and distressed that we, along with many others, have been the victims of what may be one of the largest investment frauds in history."

The statement added that the foundation "remains committed to carrying on the lifelong work of our founder, Elie Wiesel. We shall not be deterred from our mission to combat indifference, intolerance, and injustice around the world."

more...

http://news.yahoo.com/s/afp/20081224/ts_alt_afp/usfinancefraudwieselfoundation_081224163605

[GodlessBiker]

1. It is irresponsible to place all of a charity's assets with one investment manager.

A damn shame.

[truedelphi]

7. I am reminded of that every time I hear about this sort of thing

Personal economics is easy if you follow several principles:

1 ) Buy Low; Sell High
2) Don't place all your chickens in one basket (Diversify)
3) Don't count your chickens before they are hatched
4) Everything that goes up MUST come down (Despite the HYPE to the contrary)

[sohndrsmith]

2. Oh damn. That is just devastating. Damn him... n/t

[applegrove]

3. They'll be able to raise more money.

[babylonsister]

5. I don't know how comforting that is when he worked so hard,

has lost so much, and is 80 years old.

[applegrove]

9. I know it is a tradgedy for so many. In these tough economic times many people

are hurting.

[ikojo]

11. I'm sure Elie Wiesel is not broke nt

[Quantess]

19. Looks as though he is still alive.

[ikojo]

10. Sure they will raise more money because

they are crying poor mouth right now. If I could afford to give, I'd not give because the organization showed poor judgment in placing all of their money with one investor.

[Ichingcarpenter]

13. His Foundation hid his money from the Govt and was a front

of support not for the US but a foreign country.

[oberliner]

30. What the hell are you talking about?

He hid his money from the government? How was it hidden?

And American charitable foundations have to use their money to support the US?

They can't spend money to help people in other countries?

What exactly are you going on about here?

[LeftishBrit]

39. Do you object to ALL foundations that contribute money to people or projects overseas?

If you prefer charities that do their work at home, then by all means donate to them and not to others. But that doesn't mean that there's something sinister in charities that work overseas.

[TexasObserver]

4. Investing all of a foundation's funds in one vehicle is irresponsible.

I cannot believe these non profits that put everything into one fund. It's outrageous negligence. Appalling, really.

I advise foundations with similar assets to Wiesel's, and I watch their investment policies closely, because the directors (or trustees) can have direct, personal liability for mishandling funds. I had a huge fight with Merrill over one such non profit this past year, and got that foundation out of bonds tied to subprime loans just weeks before the bottom fell out. The higher rates of return are attractive to non profit foundations, but with higher returns come greater risks.

[truedelphi]

8. Wow. good for you.I am glad to hear of your getting

The client out of sub prime.

And good to hear that someone out there understands the basics.

[TexasObserver]

52. His is one of many foundations that has lost everything.

A foundation is supposed to have a written "Investment Policy," and is supposed to diversify its port folio. That is a primary function of having directors/trustees. Unfortunately, many foundations are run by boards that don't really know or understand their duties. They follow the lead of whoever runs the foundation, which is also typically the person who chose them as a director/trustee.

[Baby Snooks]

58. The "conflicts of interest"

Most of the boards I've worked with through the years usually are filled with conflicts-of-interest as the result of an accountant or attorney or some "financial whiz kid" sitting on the board who "advises" them and that is why so many board forget the words "conflicts of interest" and risk it all. After all, it's a fellow board member. Most individuals do the same thing. They may diversify. But within one basket. Quite a few lost quite a bit by allowing just one firm to handle it all. And by trusting their "advisor." If anyone learns anything from Bernie Madoff it will be that the word diversify means more than just different types of investments with one investment firm. That's the "one basket" no one seems to have understood. $50 billion is a lot of money. The impact of this has yet to be felt but it will be felt sooner than later. Quite a few formerly wealthy people really don't know how they will pay the bills in a month or two. And of course quite a few foundations which funded liberal causes have lost it all so a lot of liberal causes have lost a big chunk of their funding base. Including the Innocence Project.

And the Innocence Project cannot afford to lose a funding base. Many will not support it because its founders defended OJ Simpson. A hard call for many but one many made anyway. Sometimes good deeds do not make up for bad deeds.

[Cetacea]

6. That is a shame. K+R

[Ichingcarpenter]

12. They gave their Humanitarian Award to Laura Bush, George Bush and

Hillary Clinton.

Sounds like this foundation sucked.

Past recipients of the Award include:
Danielle Mitterrand, then First Lady of France, received the Humanitarian Award in 1989 for her work with children in Third World countries.

George Bush, President of the United States, was given the Humanitarian Award in 1991 for opposing tyranny and defending democratic ideals during the Gulf War.

His Majesty King Juan Carlos of Spain, received the Award in 1991 for bringing democracy to his country through peaceful means.

Senator Hillary Rodham Clinton, Former First Lady of the United States, was given the Humanitarian Award in 1994 for her advocacy on behalf of children and children's issues.

Laura Bush, First Lady of the United States, received the 2002 Humanitarian Award for her lifelong commitment to education.

Oprah Winfrey was given the Award in 2007 in recognition of her global humanitarian efforts.
Most recently, Nicolas Sarkozy, President of the French Republic, was awarded the Humanitarian Award in 2008 for his commitment to renew and strengthen France's ties to the United States and his steadfast support of Israel.


http://www.eliewieselfoundation.org/humanitarianaward.aspx

[Cetacea]

14. Hmmm. Maybe it was for the better. n/t

[Ichingcarpenter]

15. Humanitarian award for Laura Bush? Really?....... who is anyone kidding?

Just look at their site.




http://www.eliewieselfoundation.org/beittziporacenters.aspx

I don't mind him helping Jewish Ethopians get to Israel but
that really has a bering on americans.

[Cetacea]

22. I was serious. I assumed it was a good organization until I read your list

I had the opportunity to spend some time alone with him and was impressed with his laid back and kindly personality, especially in light of what he'd been through. But yeah, his Foundation appears to have been off base, especially in the awards area.

But I cannot make a judgment on the man.

[Ichingcarpenter]

25. Never heard of him tell I saw this thread

But wondered why he got 'press'.



I smelled something and was curious.

I would suggest to look at the oxford link
there are good foundations but most do it
to avoid taxes.

[Are_grits_groceries]

54. You didn't know who Eli Wiesel was???? nt

[Orangeone]

56. I can't stand him

He was gung ho for the Iraq war. He equated Saddam Hussein with Hitler!

[Greyhound]

16. "You can't cheat an honest man". n/t

[Ichingcarpenter]

17. The role of foundations in international anti-money laundering-Oxford University

Wouter H. Muller*
* Wouter H. Muller Henley & partners AG.

Money laundering is a serious crime that destabilizes society. The author focuses on the measures undertaken by the international community to combat money laundering and analyses a possible abuse of foundations in such illegal schemes.


http://tandt.oxfordjournals.org/cgi/content/abstract/13/5/135

[LeftishBrit]

41. Are you trying to suggest that Wiesel and his foundation were criminal?

That is REALLY the ultimate in blaming the victim.

I was not a donor to the foundation; and yes, I do think it was unwise to put all their 'eggs in one basket' (though this was hardly the only foundation to get robbed in this way). But some of the comments here are pretty shocking.

[Behind the Aegis]

18. Bullshit.

[Ichingcarpenter]

20. Laura Bush...... Humanitarian Award

Bullshit.

[Behind the Aegis]

21. I agree. Doesn't make Wiesel dishonest, now does it?

[Ichingcarpenter]

23. The Quote comes from WC Fields

and is a great quote. It is not a maxim but a generality.

I see nothing from this guy's foundation that wasn't a funnel
to hide his money or his motives. His presidential award for
freedom was awarded by

GEORGE W. BUSH..... our current resident.
Then he gave a humanitarian award to George's dad.

[Behind the Aegis]

24. I know where it is from.

"I see nothing from this guy's foundation that wasn't a funnel to hide his money or his motives."

Of course, you do. Maybe we should deport him.

[Ichingcarpenter]

27. You can if you want...... don't use we with me

You might want to send him to New Orleans 9th ward first
before 'you deport' him.


He is a decent author, but I fear, his foundation was used
like a cheap whore and even President Bush liked him.......... Do You?

[rockymountaindem]

32. So you're of the opinion that any foundation based in the US shouldn't spend it's money elsewhere?

Is that what you're suggesting?

[Behind the Aegis]

33. .

[Ichingcarpenter]

37. Its a free country to take your rewards from us peasants and give to the world

But this guy didn't give any to my country to deserve empathy for his loss


You defend a .... Bush guy

[rockymountaindem]

38. I'm not defending, I'm just asking you a question

However, I'd challenge your assertion that he took anything from "peasants" since that fund was started with the money Wiesel got from winning the Nobel Prize and grew through investments and probably contributions from wealthy benefactors. It's not like these charities hustle poor people for their last dime.

[cali]

51. critical thinking is not your forte.

so what if bush "likes" someone I like. That has nothing to do with whether or not that person is honest or worthy or whatever.

[Ichingcarpenter]

31. Listen to You.... Making Laura and George Bush Humanitarians

"Doesn't make Wiesel dishonest, now does it?"


DO YOU JUST THINK ?

[Behind the Aegis]

34. What an incredibly dishonest post, but not at all surprising.

[Ichingcarpenter]

35. I saw your bait

I'm not as simplistic as you

[Behind the Aegis]

36. And still with the dishonest posts.

Pathetic, but not at all surprising from you.

[LeftishBrit]

42. No it doesn't make hi m dishonest. It may make him an imperfect judge of character...

which many honest people are, because they expect others to be honest like themselves. And may make them more vulnerable to crooks like Madoff.

But that doesn't make Wiesel a crook. Out of curiosity, do you even know who he is?

BTW, the George Bush who received the award is not the current president, but his father. Not that I would have given Poppy an award either; but best to make these things clear.

[dsc]

53. On the subject of honesty

the George Bush honored was the first President Bush while your post dishonestly leaves the impression it was the current one.

[LeftishBrit]

40. Yes you can - it happens all the time

In fact, honest people are usually more vulnerable to fraud, because they don't easily anticipate the manipulations of the fraudsters.

[Greyhound]

44. The basis of any of these cheats is "higher returns than you can get with some safe investment",

it appeals to the greed, which the honest person is not suckered into.

Most confidence schemes prey on this trait. The idea of putting all of the foundations assets into this one fund shows the greed at a minimum.

[Behind the Aegis]

46. Prominent MIT, Harvard benefactor to close; May be largest charity claimed by scandal

The unfolding scandal surrounding the alleged Ponzi scheme run by Bernard L. Madoff yesterday claimed as a victim one of the largest foundations in the country, which has funded groundbreaking brain research at the Massachusetts Institute of Technology and diabetes research at Harvard Medical School.

The Picower Foundation of Palm Beach sent an e-mail to "colleagues and friends" late yesterday saying that it was a victim of Madoff's alleged scheme and that it would soon shut down. With assets of more than a half-billion dollars, it is believed to be the largest charity to have been forced to close by the unfolding scandal.

"It is with great sadness that I write to inform you that the Picower Foundation has ceased all grant-making, effective immediately, and will close its doors in the coming months," wrote Barbara Picower, the foundation's president, who added that its money was managed by Madoff.

Neither Barbara Picower or her husband, Jeffry, could not be reached for comment last night at their Palm Beach home.

more...

[PfcHammer]

26. A con works, in part, because of the dishonesty of the

victim.;)

[LeftishBrit]

43. No. It may work because of the naivety of the victim. Since when has this equated with dishonesty?

[Greyhound]

45. So you're saying that the person or people making investment decisions for a

multi-million dollar foundation are naive?

Kind of like, "I can see a bank from my house", qualifies me to be the director of a charitable foundation.

[LeftishBrit]

48. I don't think all are naive; I think that Wiesel was probably naive.

And probably had very bad advice.

[Behind the Aegis]

47. Prominent MIT, Harvard benefactor to close; May be largest charity claimed by scandal

The unfolding scandal surrounding the alleged Ponzi scheme run by Bernard L. Madoff yesterday claimed as a victim one of the largest foundations in the country, which has funded groundbreaking brain research at the Massachusetts Institute of Technology and diabetes research at Harvard Medical School.

The Picower Foundation of Palm Beach sent an e-mail to "colleagues and friends" late yesterday saying that it was a victim of Madoff's alleged scheme and that it would soon shut down. With assets of more than a half-billion dollars, it is believed to be the largest charity to have been forced to close by the unfolding scandal.

"It is with great sadness that I write to inform you that the Picower Foundation has ceased all grant-making, effective immediately, and will close its doors in the coming months," wrote Barbara Picower, the foundation's president, who added that its money was managed by Madoff.

Neither Barbara Picower or her husband, Jeffry, could not be reached for comment last night at their Palm Beach home.

more...

[LeftishBrit]

49. That's really awful.

[Behind the Aegis]

50. Probably funneling money...

...you know how those greedy people are.

:sarcasm:

[LisaL]

28. There is a lesson in there somewhere. Don't put all your eggs in one basket.

[MazeRat7]

29. There is a price to pay for "connections"...

sometimes it bites you in the ass.

Sad.

Peace,
MZr7

[DailyGrind51]

55. And people wonder why some equate "corporatism" with "naziism"?

[Odin2005]

57. Holy Chist, I can't beleive people are attacking Wiesel. Disgusting

WTF? :puke:

[Baby Snooks]

59. Some don't like who the foundation has honored...

There were some who objected to honoring George HW Bush simply because of his father having made his fortune from financing Thyssen knowing he was financing the biggest supporter, and beneficiary, of the Nazi Party and then laundering money for Thyssen when the Nazis turned on him.

Poltically correct people never discuss that. Politically incorrect people do. The problem is there are more politically correct people than politically incorrect in this country.

[camera obscura]

60. I feel the same way.

:(