U.S. Technion funder loses $72 million in alleged Madoff fraud

The Technion is still shaking from Wall Street financier Bernard Madoff's huge $50 billion fraud.

The American Technion Society (ATS), one of the Haifa institution's fund-raising arms, reports that it has lost a total of $72 million invested in funds managed by Madoff.

ATS invested $29 million directly with Madoff, and replowed another $43 million of its earnings on the investment back into the fund, the Jewish Telegraph Agency reported. A spokesman for the Technion confirmed the report.

The Technion was recently reported to have lost NIS 25 million that it invested directly with Madoff.

The ATS was founded in 1941, and has raised more than $1.3 billion for the Technion. The society reports revenues of $79.2 million from donations in 2005, with costs of $70 million - $50 million of which went to support the Technion.

Following the loss, the society's cash reserves have plummeted to $200 million, from the $300 million reported just a few months ago. The ATS has struggled over the past year, as the Technion saw a substantial drop in donations, due to the global economic crisis.

"The American Technion Society is an independent, American organization operating under the U.S. fund-raising laws, with a board of directors and independent investment committee, and the Technion has no influence over its investments.

"The society has raised hundreds of millions of dollars for the Technion over the past decade - assistance that has supported the Technion's accelerated development.

"The Technion is very appreciative of its contribution, and believes that with the help of loyal donors, the organization will manage to extricate itself from its difficulties, and continue to be a strong supporter of the Technion," a spokesman for the Technion said.

It is still unclear how the loss will affect the Technion's operations. The educational institution is reviewing the Madoff crisis, and making preparations to seek replacement sources of funding.

The Madoff fraud has affected many organizations in Israel, including universities, hospitals and many charities.

Some sustained losses through direct investment in Madoff's funds, while others were hit after their donors invested with Madoff and suffered losses.

The Chais Family Foundation, which raises millions of dollars annually for various causes in Israel, primarily higher education, has been forced to close shop after investing all of its money with Madoff.

The Picower Foundation, managed by Barbara and Jeffery Picower, with assets totaling $0.5 billion, also recently ceased operations after investing most of its money with Madoff.

The Picower Foundation donated to Jewish causes around the world, including in Israel, and assisted children from Sderot.

Jerome Fisher, the owner and founder of the Nine West fashion house, lost $150 million he invested with Madoff. Fisher has given hundreds of millions of dollars to Israeli causes, including Magen David Adom and the Israel Museum.

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