Colleges Hurt in Madoff Scandal Receive Subpoenas for Information

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January 16, 2009

Colleges Hurt in Madoff Scandal Receive Subpoenas for Information

The New York attorney general has issued subpoenas to colleges that lost money they had invested with Bernard L. Madoff, including New York University and Yeshiva University, The New York Times reported today.

The attorney general, Andrew M. Cuomo, is seeking information about whether the financier J. Ezra Merkin, who ran three hedge funds, defrauded universities and charities when he invested their money with Mr. Madoff, according to the newspaper. Some colleges, including NYU, say that the money was invested in Mr. Madoff’s fund without their knowledge.

The newspaper reported that Mr. Cuomo wants to know how the colleges are being affected by the Madoff scandal.

New York University is suing Mr. Merkin for the $24-million it says it lost.

Other colleges that lost money include Tufts University, which lost $20-million, and Bard College, which lost an estimated $11-million. Yeshiva, where Mr. Merkin was a trustee and headed the investment committee, lost $110-million. —Kathryn Masterson