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NEW YORK (JTA) -- Yeshiva University has suffered major losses related to the securities fraud of Bernard Madoff, sources close to the university said.
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.
Until resigning from both posts last week following his arrest, Madoff served as treasurer of Y.U.'s board of trustees and chairman of its Sy Syms School of Business.
Sources close to the university, the flagship institution of Modern Orthodoxy, told JTA that the school has lost tens of millions of dollars if not more. Y.U. released an official statement saying it would not officially address the matter at this time.
"We are shocked at this revelation," the school said in a statement sent Sunday via e-mail. "Bernard Madoff has tendered his resignation from all positions affiliated with the university and involvement with the university. Our lawyers and accountants are investigating all aspects of his relationship to Yeshiva University. We reserve our comments until we complete our investigation."
Even before last week's developments, Y.U.'s endowment had dropped from $1.8 billion to $1.4 billion, according to the school newspaper, the Yeshiva Commentator.
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