Hadassah women's group loses $90m in Madoff investments

Hadassah, the Women's Zionist Organization of America, said Thursday that it has lost $90 million it invested with Bernard Madoff, the Wall Street investment manager who recently admitted to a running a Ponzi-scheme fraud that totaled $50 billion.

"We have received a report about what happened," Hadassah's Barbara Sofer told Haaretz. "I'm sure it will take some time to study the subject and the issue's implications on our activity."

The organization released a statment on Wednesday confirming the loss, but said that while "falling victim to this unprecedented fraud will require us to make necessary adjustments ... it has not in the slightest affected our commitment to our core Zionist mission. These are indeed turbulent times, but the key pillars of Hadassah remain as strong as ever."

Hadassah has provided significant funding to Hadassah University Hospital, Ein Karem in Jerusalem.

"I hope the situation will not affect the hospital," a senior doctor there told Haaretz. "The organization has maintained the hospital for many years," he added.

Unlike most of Israel's other hospitals, Ein Karem does not receive government funding, making it more dependent on donations that any other medical institution of its caliber.

Steve Rabinowitz, a U.S.-based spokesman for the organization, said the loss will not affect plants to build a new hospital building for Hadassah Ein Karem. "We already have the money for it," he added.

Madoff stands accused of defrauding hundreds of wealthy investors in a Ponzi, or pyramid, scheme, whereby newcomers' funds are used to pay returns to initial investors. He faces up to 20 years in prison and a fine of up to $5 million if convicted.

The Women's Zionist Organization of America, which was founded in 1912 and has promoted many health and education projects in Israel, is the latest in what is becoming a long list of prominent Jewish organizations and investors to lose substantial amounts of money to Madoff. Others to lose out include Elie Wiesel's foundation, a Steven Spielberg charity, media and real estate magnate Mort Zuckerman and Yeshiva University.