Madoff Fraud Forces Foundation to Close

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Damn, all indicators point to there being a massive fallout due to this fraud. 

via JTA

The securities fraud of Bernard Madoff forced a Jewish foundation in Massachusetts to close its doors Friday.

Madoff, the founder of Bernard L. Madoff Investment Securities LLC, was arrested Thursday after admitting to his board that a hedge fund that he ran was essentially a $50 billion fraudulent scheme.

The Robert I. Lappin Foundation in Salem laid off all of its employees and locked its doors on Friday 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, who was reached by JTA Friday afternoon, said that he lost $8 million – the entirety of his foundation’s money – because it was invested with Madoff. Lappin, who had been involved financially with Madoff since 1991 also took a “significant” hit personally. He said that he knew nothing of Madoff’s fraudulent activities.

The foundation, which gave away about $1.5 million per year to Jewish causes, let go all of its workers, one fulltime employee and six part-time employees.

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