Yeshiva University hit hard by Madoff fraud

By JTA Staff · December 14, 2008

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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Jacqueline Kurz-Dunn

12/14/08 08:20 PM

Is that Sy Syms of ‘educated consumer fame? What about educated investors? IDIOTS, you desrved to lose with this thief

charles jackson

12/15/08 08:58 AM

The real crisis is going to hit the central organizations as the big-bucks-Wall-Streeters run out of appreciated securities to donate for big time recognition at dinners, galas, etc. The central organizations are filled with articulate, dedicated, committed, and fully-engaged well-trained rabbis who spend their time shuffling papers, developing programs, arranging speakers, and generally congratulating one another. Not an ounce of this effort teaches a nine-year-old to read from a siddur, or helps a 12 year old understand chumash or tanach.

When half of the staff of the organizations are cut because their funds have dried up maybe they’ll put their egos aside and use their talents and training to teach torah instead of spending their days in committees and program development.

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