JTA: The Global News Service of the Jewish People

American Technion Society takes $72 million hit in Madoff scheme

By Jacob Berkman · December 19, 2008

The American fund-raising arm of the Technion – Israel Institute of Technology lost $29 million through investment with Bernard Madoff, a spokesman for the organization told JTA, Friday.

The American Technion Society lost the $29 million that it had invested in Madoff’s fraudulent fund; it also lost another $43 million in gains that it saw from the fund, but reinvested with Madoff -- giving the institution a net loss of $72 million.

This is a blow to the organization, which had already seen a seen a significant dip in its endowment. On Sept. 30, 2008, the ATS endowment stood at $305 million. Because of the subsequent drop in the stock market, it had dipped to $274 million by the end of October. With the additional loss of $72 million in Madoff money, the endowment is now down to around $200 million.

The university itself lost 25 million shekels, or about $6.7 million, that it had invested with Madoff.

In recent days, to help make up for the losses, the ATS has received $2.8 million in unrestricted gifts.