Wall Street scandal tramples a community's benefactors

By Tom Dalton and Alan Burke
CNHI News Service

The government says Madoff confessed to "one big lie" and operated his fund as a Ponzi scheme, which earns no real profit but pays early investors with the principal of those newly recruited into the fund. Madoff estimated his losses reached $50 billion, according to the government, the largest fraud in Wall Street history.

The government froze Madoff's remaining assets - the first indication to most of his clients that something was wrong. Now, almost a week later, investors throughout the country are still counting their losses. Many are charities that trusted large portions of their endowments to Madoff.

A few, such as the Lappin foundation, were forced to close immediately. Madoff was apparently managing all of the Salem charity's $7 million endowment.

This week, rabbis on the North Shore were meeting with a Lappin foundation official to discuss ways to support the nonprofit's programs.

"We are meeting to brainstorm ways we can honor Mr. and Mrs. Lappin and their wonderful foundation ... as well as find ways to keep the messages of the Lappin Foundation" alive, Rabbi Baruch HaLevi of Congregation Shirat Hayam wrote in an e-mail.

The Jewish Federation of the North Shore also is rallying behind Lappin, who has been one of its major backers. There has been talk of fundraising to support some of the foundation's programs.

"We'd like to talk to him about letting the federation take on an effort to capture all of this outpouring of support and concern for him and his programs," said Robert Salter, the federation president.



print this story    email this story   




4