Two Big Donors Among Targets in Madoff Inquiry
May 18, 2009 | Read Time: 1 minute
Two major U.S. philanthropists are among a group of large-scale investors under scrutiny by federal investigators in the Bernard Madoff scandal, The Wall Street Journal reports, citing sources familiar with the investigation.
Jeffry Picower and Stanley Chais are already the targets of lawsuits filed by Irving Picard, the trustee overseeing the Madoff case. Those lawsuits allege that they benefited from their dealings with the disgraced financier. (Read The Chronicle’s article about the lawsuit against Mr. Picower, his wife, and their foundation.)
Sources told the Journal that investigators with the U.S. attorney’s office in Manhattan are gathering evidence they believe will show that Mr. Picower and Mr. Chais told Mr. Madoff how much they wanted in return for their investments.
Lawyers for both men said they had no knowledge of Mr. Madoff’s Ponzi scheme when they were investing with him. Mr. Picower’s foundation shut down in December, citing billions of dollars in Madoff-related losses.
The Chronicle of Philanthropy reported last month on the Picower closure’s ripple effect in the nonprofit world.
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