Share
Email
PrintMadoff fraud forces Lappin foundation to close
The securities fraud of Bernard Madoff forced a Jewish foundation in Massachusetts to close.
Madoff, the founder of Bernard L. Madoff Investment Securities LLC, was arrested Dec. 11 after admitting to his board that a hedge fund he ran was essentially a $50 billion fraudulent scheme.
The Robert I. Lappin Foundation in Salem laid off all its employees and locked its doors the next day after its benefactor’s assets were frozen because they were invested with Madoff.
“Mr. Lappin investments were frozen,” the foundation’s executive director, Deborah Coltin, told JTA. “The assets are frozen. We have no money. The foundation cannot access its money.”
Lappin told JTA on Dec. 12 that he lost $8 million -- all of his foundation’s money -- because it was invested with Madoff. Lappin, who had been involved financially with Madoff since 1991, also said he took a “significant” hit personally. He said he knew nothing of Madoff’s fraudulent activities.
The foundation, which gave about $1.5 million per year to Jewish causes, let go all its workers, one full-time employee and six part-timers.
Click to login and write a letter to the editor or sign up for the Daily Briefing.
This article was made possible by the support of readers like you. Donate to JTA now.
Featured Content
Need to know? Get JTA's free e-newsletters!
- Peace Now’s Jerusalem office vandalized
- Israeli tourist released from Chile jail
- Bagels regain bread status in Ireland
- Larry Greenfield tapped to lead JINSA
- Senators to urge Obama to make Iranian ‘capability’ a red line
- Napolitano to Jewish leaders: No imminent threat
- Pro-Palestinian Presbyterians close Facebook page after complaints
- JFNA lauds Obama on charitable deduction backtrack
