Downturn Threatens 100K Charities

(NEWSER) - At least one person looks to have benefited more from Bernie Madoff’s Ponzi scheme than Bernie Madoff, ProPublica reports. Jeffry Picower, a secretive philanthropist and investor in medical technologies, is on the books as having withdrawn some $5.1 billion in returns from 1995 to 2008, well beyond his original investment. Records show some fishy numbers in Picower’s accounts, and the Madoff trustee has filed a lawsuit against him. More»

Says 'investment guru' Merkin was really just 'master marketer'

(NEWSER) - New York AG Andrew Cuomo has charged J. Ezra Merkin, a prominent New York philanthropist who funneled $2.4 billion into Bernie Madoff’s Ponzi scheme, with fraud, the Wall Street Journal reports. The complaint doesn’t accuse Merkin of knowing about the scheme. But it alleges that he lied to his clients, including many charities and universities, about how exposed they were to Madoff and failed to disclose his conflicts of interest—all while pocketing $470 million in fees. More»

Higher taxes, cap on deductions may lead to $4B less in charity

(NEWSER) - Charity may be a virtue, but in America there's another motivation for philanthropy: generous tax deductions of as much as 35%. Barack Obama's proposed 2010 budget may change all that; not only will it raise taxes on the most wealthy to almost 40%, it will cap charitable deductions at a 28% rate. The double whammy has angered the world of philanthropy, already suffering from slowed contributions—and as NPR reports, the change might not make it into the final budget. More»

(NEWSER) - Bernard Madoff’s alleged mega-fraud and the large number of Jewish investors he apparently snookered is stoking anti-Semitic feeling in tony Palm Beach, ABC News reports. “It is a terrible thing to say, but some of the WASPs are delighted, they take great pleasure in this,” said an author who has written critically about the socially stratified Florida enclave. More»

Lawyer wants some of ex-wife's millions now that his are worthless

(NEWSER) - Bernie Madoff’s scam isn’t just affecting pockets—now it’s poking its nose into personal matters, too. A New York lawyer who says he lost millions to Madoff is suing his ex-wife in a bid to share the pain, the New York Post reports. Steven Simkin paid Laura Blank $27 million for her half of their joint Madoff investment; it’s now worthless, and he wants “restitution.” More»