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

[Behind the Aegis]

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...

[Greyhound]

1. I'm sure that someone will correct me if I'm wrong, but isn't the primary duty of

the board of any charitable foundation to ensure the foundation's continued existence? Here we have several that have had all, or enough to cripple, of the foundation's assets in this one fund. This just gets smellier and smellier.

[aquart]

2. I believe the board is expected to cough up quite a bit.

Sounds like the charity and its board were all hit by Madoff.

[Hannah Bell]

3. Mr. Picower got scammed by Ivan Boesky, too. My, my, isn't that odd, it's

a wonder he has any money left at all.

His charities, however, appear to benefit him too...

http://www.forbes.com/forbes/2002/1014/068_print.html.

[Spectral Music]

7. Thanks for this link, Hannah

Preciate it.

[HamdenRice]

4. A drop in the bucket of Harvard's losses. They admit they lost $11 billion on hedge fund investment

Harvard has been circulating emails to faculty, staff, students and alums saying that they blew approximately 1/4th of their endowment on hedge fund investments that went bad -- about $8 billion, although I've read estimates of $11 billion and as high as $18 billion (more than half) if you include assets that have become illiquid.

:rofl: :rofl: :rofl:

A measly loss of half billion is peanuts to them at this point in terms of their losses.

[depakid]

5. I smell breaches of fidiciary duties

Clue one that something was amiss can be found right here:

Harvard endowment posts strong positive return

Harvard University’s endowment earned a 23.0 percent return during the fiscal year ending June 30, 2007. With FY07 being one of the best performance years since the inception of Harvard Management Company in 1974, the overall value of the University’s endowment grew to $34.9 billion.

The continued strong returns reinforce the endowment’s critical support for Harvard’s academic programs and mission. In the 2007 fiscal year, distributions from the endowment financed almost one-third of Harvard’s operating budget, or over $1.1 billion.

More: http://www.news.harvard.edu/gazette/2007/08.23/99-endowment.html

Doesn't take a Harvard MBA to realize that those funds weren't being managed in trust for perpetuity.

[Captain Hilts]

6. I just can't worry about Harvard and MIT losing money. nt