National Catholic Reporter

The Independent News Source

Madoff Trustee to \"clawback\" funds from charities

 |  NCR Today

The bottomline is this: If a charity invested in Madoff's ponzi scheme, took money out of the Madoff Fund, those funds can be clawed back by the bankruptcy trustee for distribution to victims.

Irving Picard, the liquidator for Bernard Madoff’s investment business, said he might sue charities that took out more money than they invested with the imprisoned con man to force them to return the difference.

Picard, a lawyer with Baker & Hostetler LLP, declined to discuss specific nonprofit institutions. “We will look at charities on a case-by-case basis before determining what action may be appropriate,” he said.

Picard so far has pursued only charities that he claims should have known about the fraud. He sued longtime Madoff investor Jeffry Picower, a philanthropist and lawyer, and his charity in May for allegedly taking fake profit of $6.7 billion for himself and his affiliates over a 20-year period. His charity is now closed.

Christmas-in-content-block.jpg Give a Christmas gift that lasts all year. Give the gift of NCR!

NCR Comment code: (Comments can be found below)

Before you can post a comment, you must verify your email address at Disqus.com/verify.
Comments from unverified email addresses will be deleted.

  • Be respectful. Do not attack the writer. Take on the idea, not the messenger.
  • Don't use obscene, profane or vulgar language.
  • Stay on point. Comments that stray from the original idea will be deleted. NCR reserves the right to close comment threads when discussions are no longer productive.

We are not able to monitor every comment that comes through. If you see something objectionable, please click the "Report abuse" button. Once a comment has been flagged, an NCR staff member will investigate.

For more detailed guidelines, visit our User Guidelines page.

For help on how to post a comment, visit our reference page.

 

Christmas-Feature-Flag-275x60.jpg

NCR Email Alerts

 

In This Issue

November 21-December 5, 2014

11-21-2014.jpg

Not all of our content is online. Subscribe to receive all the news and features you won't find anywhere else.